Daily Price Action
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GBPJPY Approaches Key Inflection Point

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use.

The GBPJPY is approaching a key inflection point on the 4-hour time frame. On Sunday, I pointed out last week’s retest of former channel support that extends from the 2017 low.

However, buyers weren’t ready to give in just yet. This week’s bounce from the 147.00 area shows there’s still some strength to work through before the next leg lower can materialize.

A look at the 4-hour chart shows a level that could signal weakness if broken. The short-term trend line from the May 29 low is under pressure as I type this, and although it’s holding as support, buyers appear to be struggling.

Patience is usually the best course of action in situations like this. The GBPJPY is either going to close back above former channel support from the 2017 low or below short-term trend line support.

If it’s the former, we could see the pair trend higher. If sellers manage a close below this trend line, though, it may signal the start of the next push lower.

Keep in mind, however, that the 147.00 area could attract a few buyers on the way down. A daily close below that would re-expose the next key support at 144.00.

As long as the pair remains below former ascending channel support near 148.20 on a daily closing basis (New York close charts), I will stay bearish the GBPJPY. That said, I need to see more from sellers before I commit any capital to a position.

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GBPJPY 4-hour wedge pattern

Leave a Comment:

18 comments
Paseka says

Hi Justin

What is your take on gbpaud?

Reply
    Justin Bennett says

    I don’t have a take on it. I’m not interested in the GBPAUD right now.

    Reply
Michael Badu says

Thank you Justin.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
imesh says

thank you

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Justin Bennett says

You can visit the link below to see the former channel support I’m referring to in the chart above.

https://dailypriceaction.com/daily-setup/gbpjpy-recap-and-outlook-for-next-week

Reply
Ferus says

Nice analysis

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Sekend says

I have 2 sell positions on GBPJPY, mhhh panicky now🤔

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grace says

Justin a big thank you. I’m following your analysis gradually. I wish i have seen this site on time. No word about GBPUSD

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Sudhir says

What is your forecast for USD-JPY Justine

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Sudhir says

And also for Eur-USD

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    Justin Bennett says

    USDJPY: Nothing much. It’s pretty boring at the moment.

    EURUSD: See Sunday’s weekly forecast.

    Reply
ANTANAS says

I SELLING GBP/JPY I THINK IS TIME TO SELL.

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afzal+qureshi says

i have no position in GBPJPY. As per your advice its a good time to short with the stop loss of 148.20 ?????

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    Justin Bennett says

    I never offer advice on what someone should do with their money. It’s your money and therefore your decision.

    Reply
Dale says

HI justin, how do you choose your the currency pair to trade of focus into? I read your comment below that you are not interested with GBPAUD (for now), what makes you interested to a certain currency pair to analyze and trade?

Thanks man

Reply
    Justin Bennett says

    I look for favorable patterns and key levels as well as price action and momentum. Essentially, it comes down to the “look and feel” of a market.

    Reply
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