Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

Is GBP/JPY Set to Slide Further?

GBP/JPY traded higher yesterday after it hit support slightly above the psychological zone of 130.00. However, during the Asian morning today, the pair found resistance at 131.45 and retreated. Overall, the rate has been printing lower highs and lower lows below a downside resistance line since April 30th and thus, we would consider the short-term picture to be somewhat negative.

That said, before we start examining the prospect of more declines, we would like to see a decisive break below the psychological zone of 130.00. Such a move may allow the bears to drive the battle towards the inside swing high of March 23rd, at 129.12, which if broken may pave the way towards the 127.35 zone, marked as a support by the low of the same day.

Taking a look at our short-term oscillators, we see that the RSI has topped slightly below 50 and turned down again, but the MACD, although negative, remains above its trigger line. Both indicators detect negative momentum, but the fact that the MACD lies above its trigger adds more credence to our view of waiting for a beak below the 130.00 zone before we get more confident on the downside.

In order to begin assessing whether the bulls have stolen the bears’ weapons, we would like to see a strong move above 131.90. This may also take the rate above the downside resistance line drawn from the high of April 30th and could initially aim for the high of May 11th, near the 133.15 zone. Another break, above 133.15, is likely to carry larger bullish implications, perhaps setting the stage for advances towards the peak of April 30th, at 135.45.

GBP/JPY 4-hour chart technical analysis


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.