GBP/JPY – Can it remain in bullish territory?

Or is a bearish breakout coming?

It’s been a wild ride in GBPJPY over the last month or so and it may only be about to take off.

From long-term consolidation to finally breaking higher – and in impressive fashion – to a sharp reversal after the BoE bottled raising rates. It’s been quite the month and there’s still plenty of action to come.

The pair now finds itself between two very interesting levels that may hold the key to the next surge.

To the downside, it’s last weeks lows around 152.50, where the 61.8 fib – September lows to October highs – coincides with the 55/89-day SMA band, maybe even the upper end of the 200/233-day SMA band. As long as the pair remains above here, it’s in bullish territory.

To the upside, it’s yesterday’s highs around 154.75 where the 61.8 fib – 3 November highs to 11 November lows – coincides with the 200/233-period SMA band on the 4-hour chart.

A break in either direction could tell us a lot about the path of travel in the coming weeks.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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