GBPJPY Technical Analysis

FX:GBPJPY   British Pound / Japanese Yen

If we take a look at the daily timeframe chart of GBPJPY we can see there has been some strong GBP price recovery following the JPY flash crash on January 3rd, 2019 - this is followed by some consolidation within Kumo. More recently, if we focus our attention on the daily Kumo breakout that occurred on Feb 8th, 2019 (which shows a bullish bias toward GBPJPY ) – we can see that price did, in fact, retrace towards Kijun Sen where it found support, the same level that coincides with the 0.382 Fibonacci retrace level, forming a strong basis for further upward movement.

Looking at the weekly chart, we can see that a strong downtrend is dominant. However, some upside movement is likely to retest the weekly trendline (a move of approximately 250 pips). With Tenkan Sen and Kijun Sen being flat there isn't any clear directional bias toward price, suggesting consolidation is very likely to occur. UK jobs data released earlier today were mainly on consensus despite Brexit uncertainties, suggesting the GBP could see some strength over the short term against a basket of other currencies providing there is no more negative news regarding Brexit in the coming days – a very optimistic scenario in my opinion.