GBP/JPY: Months from May through August are typically weak for the cross – DBS Bank
|GBP/JPY is marching higher from a recent 155.60 low. However, price recoveries can be seen as launchpads for top-picking, according to Benjamin Wong, Strategist at DBS Bank.
A minor bearish head and shoulders top pattern looks plausible
“Seasonality for GBP/JPY is weak for the months May-August; hence we see price recoveries as launchpads for top-picking.”
“The moot question is whether this current rally offers an identical opportunity to short GBP/JPY, given the cross has been guided higher by a rising trendline from 127.63 since late March 2020. If the cross does not sustain a fresh challenge to surmount 168.43, the balance of odds fancies another shorting opportunity.”
“There is the image of a minor head & shoulders top to tap onto; but that needs affirmation of a proper neckline cut.”
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