TRENDING:

US NFP

GBP/USD

GBP/JPY Price Analysis: Bullish flag dominates until break of structure

GBP/JPY is a complicate mix between USD/JPY and GBP/USD.
There are prospects of a move higher rin GBP/JPY as per the bull flag, but bears are lurking.

Ross J Burland FXStreet

As per the prior analysis on the Yen, USD/JPY Price Analysis: Bullish fundamentals meet a technically bullish chart bias, the Japanese currency has indeed weakened and that is playing out through the crosses such as GBP/JPY.

USD/JPY daily charts, before & after

As seen, the Yen fell and USD/JPY is now above an old resistance. However, the W-formation is a reversion pattern sp this could keep the pair hamstrung, stalling the advance. Also, there has been as surprise pick in Kazuo Ueda who was nominated as the Bank of Japan's next governor and market chatter suggests he’s a pragmatist rather than a hawk or a dove.

Meanwhile, the following illustrates the bias at this point for a move lower given how far the Pound has rallied and Yen has fallen.

GBP/JPY H1 chart

a break of the trendline support opens risks of a move lower below 162.00.

GBP/JPY M15 chart

We have a potential topping pattern but the price needs to close sharply lower or it may otherwise be regarded as a bullish flag:

The 78.6% Fibonacci near 161.50 could be the trap door that the bears will want to break through to invalidate the bull flag thesis.

GBP/USD Price Analysis

Looking to GBP/USD, if the bears commit, then we could see a move below support and that could trigger a deep correction in GBP/JPY.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD climbs toward 1.1800 on broad USD weakness

EUR/USD gathers bullish momentum and advances toward 1.1800 in the second half of the day on Tuesday. The US Dollar weakens and helps the pair stretch higher after the employment report showed that Nonfarm Payrolls declined by 105,000 in October before rising by 64,000 in November.

GBP/USD climbs to fresh two-month high above 1.3400

GBP/USD gains traction in the American session and trades at its highest level since mid-October above 1.3430. The British Pound benefits from upbeat PMI data, while the US Dollar struggles to find demand following the mixed employment figures and weaker-than-forecast PMI prints, allowing the pair to march north.

Gold extends its consolidative phase around $4,300

Gold trades in positive above $4,300 after spending the first half of the day under bearish pressure. XAU/USD capitalizes on renewed USD weakness after the jobs report showed that the Unemployment Rate climbed to 4.6% in November and the PMI data revealed a loss of growth momentum in the private sector in December.

US Retail Sales virtually unchanged at $732.6 billion in October

Retail Sales in the United States were virtually unchanged at $732.6 billion in October, the US Census Bureau reported on Tuesday. This print followed the 0.1% increase (revised from 0.3%) recorded in September and came in below the market expectation of +0.1%.

Ukraine-Russia in the spotlight once again

Since the start of the week, gold’s price has moved lower, but has yet to erase the gains made last week. In today’s report we intend to focus on the newest round of peace talks between Russia and Ukraine, whilst noting the release of the US Employment data later on day and end our report with an update in regards to the tensions brewing in Venezuela.

BNB Price Forecast: BNB slips below $855 as bearish on-chain signals and momentum indicators turn negative

BNB, formerly known as Binance Coin, continues to trade down around $855 at the time of writing on Tuesday, after a slight decline the previous day. Bearish sentiment further strengthens as BNB’s on-chain and derivatives data show rising retail activity.