Analysis –
On GBP/JPY we have a long-term bearish view with the expectation that price will start a major decline towards 133.00 in the coming months and into next year. This is a view that we can see is shared amongst many institutional traders.
Quoted from capital.com –
“The pound to yen forecast from ‘WalletInvestor’ suggests that the GBP will peak against the JPY in May at 142.40, then start a long-term decline – falling to 138.25 by the end of 2021, 133.82 by December 2022 and 119.59 by January 2026.”
Noting with the above sentiment in mind the price of GBP/JPY has peaked significantly higher at 155.00 – 156.00 suggesting the timeline is increased to see the market make its way back down to the 138.00 handle.
Posted above is our view on the pair on the daily time frame and posted in the comments below is our view on GBPJPY in the short term and what we are looking out for.
Moving from the Daily time frame to the 4hr chart we have identified two key areas of structure and for us to look for shorting opportunities we want to see structure to the downside broken and our ‘watch for break’ broken. We will continue to monitor lower time frames to get in some intra-day trades and keep riding this long-term bearish market to the downside.
As always, I’d love to hear your thoughts on the US Dollar Index and what your outlook is. Let me know in the comments below.
Hope you have had a profitable week in the markets, and it continues through into next week.
The Fx Chartist
On GBP/JPY we have a long-term bearish view with the expectation that price will start a major decline towards 133.00 in the coming months and into next year. This is a view that we can see is shared amongst many institutional traders.
Quoted from capital.com –
“The pound to yen forecast from ‘WalletInvestor’ suggests that the GBP will peak against the JPY in May at 142.40, then start a long-term decline – falling to 138.25 by the end of 2021, 133.82 by December 2022 and 119.59 by January 2026.”
Noting with the above sentiment in mind the price of GBP/JPY has peaked significantly higher at 155.00 – 156.00 suggesting the timeline is increased to see the market make its way back down to the 138.00 handle.
Posted above is our view on the pair on the daily time frame and posted in the comments below is our view on GBPJPY in the short term and what we are looking out for.
Moving from the Daily time frame to the 4hr chart we have identified two key areas of structure and for us to look for shorting opportunities we want to see structure to the downside broken and our ‘watch for break’ broken. We will continue to monitor lower time frames to get in some intra-day trades and keep riding this long-term bearish market to the downside.
As always, I’d love to hear your thoughts on the US Dollar Index and what your outlook is. Let me know in the comments below.
Hope you have had a profitable week in the markets, and it continues through into next week.
The Fx Chartist
