🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

GBP/JPY range trading continues

Published 04/19/2024, 03:19 AM
Updated 05/01/2024, 03:15 AM
GBP/JPY
-
  • GBP/JPY is in the red today, not far from its recent high
  • It continues to hover inside a rectangle structure
  • Momentum indicators are in waiting mode for the next key events

  • GBPJPY_2024Apr19

    GBP/JPY is trading lower today as the market is digesting the latest developments in the Middle East and the lower Japanese inflation prints, and also prepares for next week’s BoJ meeting. Following an aggressive pace of ascension, GBP/JPY appears to have settled inside a rectangle with the upper boundary set by the July 21, 2005 low of 192.57. The barrage of verbal interventions by Japanese officials could have also contributed to this range trading activity, which is clearly depicted in the momentum indicators.
     

    More specifically, the Average Directional Movement Index (ADX) remains stuck below its 25-threshold, signaling a trendless market. Similarly, the RSI continues to hover around 50, confirming the current indecisiveness of market participants. More importantly, the stochastic oscillator is trying to edge above its moving average, but such a move needs to pick up pace in order to be seen as a strong signal.
     
    Should the bulls remain confident, they could test the resistance set by the July 21, 2005 low at 192.57 and then try to lead GBP/JPY back above the January 2, 2024 ascending trendline. They could then have the chance to record a new 2024 high, above the current 193.52 high, with the next plausible target being in the 195.00 area.
     
    On the other hand, the bears are desperate to regain market control and gradually push GBP/JPY towards the 189.61-190.66 range, which is populated by the March 31, 2004 low and the 50-day simple moving average (SMA). If successful, they could then have a go at testing the support set by the 185.65-187.68 area that is defined by the August 22, 2023 high and the 100- and 200-day SMAs.
     
    To sum up, range trading in GBP/JPY continues as market participants have taken a back seat due to the geopolitical developments monopolizing the newsflow.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.