CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
✖

GBP/JPY eyes break of its 2015 high

Article By: ,  Market Analyst
Today 5:52 AM

The Bank of Japan held their interest rate at 0.25% as widely expected, and there is little expectation for them to fire up their hawkish engines by any meaningful degree soon. The Bank of England also meets shortly and is also likely to hold their interest rate, at a much higher 4.75%. And recent data makes it unlikely that they will deliver a notably dovish tone for next year’s policy. And that could play nicely with a potential long setup on GBP/JPY.

 

 

GBP/JPY daily chart:

A nice bullish rally has emerged from the December low, although it has stalled at the 2015 high once more. It provided resistance back in September ahead of an ascending triangle breakout, but this time only a mild two-day pullback has been seen. The cross found support at the 50-day EMA on Wednesday, and today’s low used it as a springboard to now trade above Monday’s close.

 

Given the daily RSI (14) is confirming the move higher, a bullish break above the 2015 high is now favoured. While there is a bearish divergence on the daily RSI (2), it is not overbought, and a break higher could also see the RSI break its own divergence.

 

 

GBP/JPY 1-hour chart:

The hourly chart shows that the weekly R1 pivot has capped as resistance alongside the 2015 high. And while we saw a sudden selloff from those highs on Wednesday, support has since been found at the 50-day EMA with two bullish hammers.

 

With the RSI (2) overbought, bulls could wait for dips within today’s range, to say the 195 handle near the 200-day EMA. The bias remains bullish while prices remain above the 50-day EMA / 194 handle.

 

A break above the 2015 high assumes bullish continuation, with the 197 handle, weekly R2 pivot (197.55) and Nov 20th high comes into focus, just below 198.

 

 

 

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

  1. Open a Forex.com account, or log in if you’re already a customer.
  2. Search for the pair you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

  

StoneX Financial Ltd (trading as "FOREX.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, FOREX.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date.


This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it. No opinion given in this material constitutes a recommendation by FOREX.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although FOREX.com is not specifically prevented from dealing before providing this material, FOREX.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. For further details see our full non-independent research disclaimer and quarterly summary.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Financial Ltd. StoneX Financial Ltd is a company incorporated in England and Wales with UK Companies House number 05616586 and with its registered office at 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is authorised and regulated by the Financial Conduct Authority in the UK, with FCA Register Number: 446717.

FOREX.com is a trademark of StoneX Financial Ltd. This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy. FOREX.com products and services are not intended for Belgium residents.

© FOREX.COM 2024