GBP/JPY technical analysis: Bulls need a break above 136.28

GBP/JPY charted a bearish outside day on Tuesday.
A break above the bearish candle's high would confirm a bullish reversal.

Omkar Godbole FXStreet Contributor

GBP/JPY is currently trading largely unchanged on the day at 135.63, having created a bearish outside day candle on Tuesday.

A bearish outside day occurs when the day begins with optimism but ends with a pessimistic note, engulfing the high and low of the preceding day. As a result, the candlestick pattern is considered a bearish reversal or bearish continuation pattern depending on its position.

In GBP/JPY's case, the bearish outside day has appeared following a significant drop and has weakened the bullish case put forward by the positive divergence (higher lows) of the 14-day relative strength index (RSI).

That said, the focus is on today's close. A bearish continuation would be confirmed if the pair closes today below 135.39 (yesterday's low). On the other hand, a close above the bearish outside day's high of 136.28 would confirm a short-term bullish reversal and open the doors to 137.79 (July 1 high) and the 50-day moving average (MA), currently at 138.57.

Daily chart

Trend: Bullish

Pivot points

1. R3 137.06
2. R2 136.68
3. R1 136.16
PP 135.78
1. S1 135.26
2. S2 134.88
3. S3 134.36

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.