FOREX Chart Of The Day: GBPJPY…WHAT NEXT?

In this video update, we take a look at #GBPJPY and what could happen to the currency pair this week.

Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.

In this video, I’m going to take a quick look at GBP/JPY and how you can see opportunities in this market.

Weekly timeframe

So if you take a look at this weekly timeframe, we can see that the price retested these recent opens and closes around 129.15. It retested that and rejected it.

Daily timeframe

If I go to the daily timeframe, you can almost see an inverse Head & Shoulders pattern with the price forming lower lows and a pullback. Is this gonna be the right shoulder of the pattern?

If you watched the Forex Market Outlook video, I was looking for reversals on GBP/USD and the GB Pound, in general.

The JP Yen was very weak. It was weak because the stock markets are continuing to rally, as you can see with the Dow Jones. That suggests that we could be looking for long opportunities on GBP/JPY because the JP Yen will weaken in line with the uptrend of the stock markets.

So, the JP Yen will continue to weaken the GB Pound. Looking for reversals make a good opportunity to look for a long position.

If we are looking at this area, we could look for an end-of-day if the price closes bullish. This is because it could be forming the right shoulder of this inverse Head & Shoulders pattern.

Four-hour timeframe

If we go down into a four-hour timeframe, I need to see a change in trend to get long. At the moment, we just have this move, so markets are making lower lows and lower highs.

I want to look for an area where the market could change that. If we take out these highs, that would give us an opportunity to look for a buy. Or, if the price comes back to retest the swing lows, a rejection forms.

I’d like to see a double bottom pattern where the left hits the right area, then we can look for opportunities to the upside from that position. I want to see a change in trend, whether it be that double bottom pattern or a breakout of a recent swing high.

Keep an eye on GBP/JPY. This is a market that I quite like if you’re looking at risk as the stock markets continue to rally.

I know we are short GBP/USD on our end of days, so we can manage that position. Looking at the four-hour trend, the market is continuing to me the downside. So, I’m going to move my stop loss above the trend.

I know we are in short on EUR as well. Again, we are looking for that trend to continue. I think we are going to get a pullback into these swing lows before actually seeing any continuation.

Other than that, we are focusing on that potential GB Pound reversal. I will go through GBP/AUD tomorrow, but the GBP/JPY does look good.

I always go for your comments, and if you do want to ask me anything, please do so below, and I’ll get back to you as soon as possible.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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