GBP/JPY Trading

AshFX · #11 (**permalink**) 14-04-2010, 12:49

Ok, as of right now, we have a strong bullish candle on the GBP/JPY Daily chart, as can be seen. More good signs for a continuation of this potential uptrend is the fact that the Stochastics are smoothly pointing up, and the AC and AO have turned green just today. However, there is a problem...

And that is, the resistance from the previous swing high, AND the psychological resistance that is the 145.00 mark. We're it not for this, I would have been very confident of buying GBP/JPY, but as it stands, there could well be some choppiness over the next few days.

AshFX · #12 (**permalink**) 15-04-2010, 12:36

Ok, so as predicted, the GBP/JPY was unable to breach the line of resistance shown yesterday. It's taken quite a tumble, close to 200 pips. Taking a look at todays hourly chart, as of right now, it's just touched the 38.2% Fibonacci level, exactly to the pip, at 143.91, before bouncing straight back down.

Now, we can see that the Stochastics are in an oversold position, and they've also crossed over and coming back up. In addition, the Accelerator Oscillator has turned green, another bullish indicator. The question is, will it now go ahead and cross the 38.2 fib level which is a point of mild resistance? Also, even if it does cross that, it then needs to cross the 144.00 level, a psychological point of resistance. I think if it does cross that, we'll see a rally up beyond the 50% mark, and approaching the 61.8% level.

Craigfx · #13 (**permalink**) 04-01-2012, 09:52

The strong finish of the JPY against the USD and the weakness of the GBP against the American dollar, took the pair GBP/JPY down. In fact, the strength of the JPY against the British pound was obvious after the impact of the earthquake on the JPY has vanished on April last year. Therefore, unless something unusual happens to one of the currencies, the downtrend should remain in the foreseen future.
The pair gets the support at 119.0 and the stochastic oscillator indicates that the pair might correct from this level. However, if the pair breaks this support, the price might slide to the historical low at 117.0.