GBP/JPY Price Analysis: Rally Testing Key Resistance Barrier

The British Pound has rallied some-more than 4.7% opposite a Japanese Yen given a Mar lows with a allege now contrast a pivotal connection insurgency range. While a broader opinion does sojourn weighted to a topside, a convene might be during risk near-term while next this threshold.

GBP/JPY Daily Price Chart

GBP/JPY Price Chart - Daily Timeframe

Technical Outlook: In this week’s Technical Perspective, we highlighted a connection insurgency section in GBP/JPY around 152. The segment in concentration is 151.84-152.17 where a 61.8% retracement of a yearly operation converges on a 2017 high-day tighten and slope resistance. The evident allege is exposed while next this threshold.

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GBP/JPY 240min Price Chart

GBP/JPY Price Chart - 240min Timeframe

Notes: A closer demeanour during cost movement see’s GBP/JPY trade within a proportions of a near-term ascending channel arrangement with a top together serve highlighting a 151.84-152.17 insurgency zone. A crack above this segment would expected fuel accelerated gains targeting 152.86, a 2017 high during 153.41 and a 78.6% retracement during 154.12.

Interim support rests during 150.60 with bullish cancellation now lifted to a monthly open during 148.96– a mangle next this turn would advise a incomparable improvement is underway targeting a low-day tighten during 145.84 (not a adored scenario).

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Bottom line: Prices are contrast up-trend insurgency and a crack by this segment would be indispensable to keep a evident concentration higher. That said, IF GBP/JPY is indeed streamer higher, demeanour for halt support within this near-term descending structure on a pierce reduce from here. Ultimately we’ll preference shopping pullback’s targeting a crack of this vicious insurgency zone.

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GBP/JPY IG Client Positioning

GBP/JPY Client Sentiment

  • A outline of IG Client Sentiment shows traders are net-short GBPJPY- a ratio stands during -1.01 (49.7% of traders are long) –extremely diseased bullishreading
  • Long positions are 2.5% reduce than yesterday and 0.4% aloft from final week
  • Short positions are 7.3% reduce than yesterday and 0.7% reduce from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-short suggests GBPJPY prices might continue to rise. Yet traders are reduction net-short than yesterday and compared with final week. Recent changes in view advise that a stream GBPJPY cost trend might shortly retreat reduce notwithstanding a fact traders sojourn net-short.

See how shifts in GBP/JPY retail positioning are impacting trend- Learn some-more about sentiment!

Relevant Data Releases

GBP/JPY Economic Calendar

Other Setups in Play

– Written by Michael Boutros, Currency Strategist with DailyFX

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