The British Pound (GBP) is losing ground against the Japanese Yen (JPY) on Thursday, even though sentiment improved after the US Federal Reserve (Fed) agreed to slow the pace of rate increases. Hence, Asian and European stocks rallied, but the JPY had the upper hand in the FX space. At the time of writing, the GBP/JPY is trading at 167.71 after hitting a daily high of 168.29.
The GBP/JPY daily chart illustrates the pair as upward biased, even though a head-and-shoulders chart pattern emerged and remains intact. On Wednesday, the cross climbed nearby the pattern’s right shoulder, but sellers leaning below 169.00 sent the GBP/JPY tumbling towards 168.00 and beyond. Of note, the Relative Strength Index (RSI) remains above the 50-midline, but buyers are losing momentum as the slope turns down.
Short term, the GBP/JPY 4-hour chart shows the cross broke below the bottom-trendline of a rising wedge, signaling that sellers are moving in. However, unless the GBP/JPY tumbles below the 200-Exponential Moving Average (EMA) at 167.18 and the S1 daily pivot at 167.00, risks will remain skewed to the upside. On the other hand, if the GBP/JPY reclaims 168.00, the inverted head-and-shoulders chart pattern could be invalidated if the cross pierces 169.00.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.94% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.