GBP/JPY Price Analysis: Treads water around 173.20s, but keeps its bullish bias

Share:

GBP/JPY remains unchanged mainly but sustains its bullish bias, ending Wednesday’s session at 173.30 after a dip to 172.51.
Candlestick patterns hint at a potential decline, pending confirmation with a close below the Tenkan-line.
The RSI and 3-day RoC suggest a sustained upward trend, highlighting critical levels for price shifts.

GBP/JPY ended Wednesday’s session almost flat after traveling from its daily low/high of 172.51-173.64. However, as the Asian session begins, the GBP/JPY floats around 173.24, unchanged but maintaining its bullish bias.

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY remains upward biased, per the daily chart, but it could have dipped lower. Thankfully, the Tenkan-Sen level at 172.73, which briefly pierced, opened the door for a GBP/JPY dip toward a new weekly low of 172.51 but acted as support as the GBP/JPY bounced off that price level, closing Wednesday’s session at 173.30.

During the last three days, the GBP/JPY candlestick chart portrays two dojis, followed by one hanging-man, suggesting further downside is expected. But, the GBP/JPY must achieve a daily close below the Tenkan-line. A breach of the latter will expose the May 2 daily high shifted support at 172.33 before reaching the Chikou-Span peak of March 27 at 171.69. Once cleared, the GBP/JPY can fall toward the Kijun-Sen at 170.29.

Conversely, for a GBP/JPY bullish continuation, the cross needs to conquer the 174.00 mark. Clearance of that level could pave the way to test the YTD high of 174.24 before opening the door to the 2016 high of 177.37.

Oscillators like the Relative Strength Index (RSI) indicator and the 3-day Rate of Change (RoC) warrant further upside expected. Therefore, the trend I set to continue upward.

GBP/JPY Price Action – Daily chart

thewealthiestinvestor.com is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of thewealthiestinvestor.com are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of thewealthiestinvestor.com websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and thewealthiestinvestor.com, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.