Bullish Bat Underpins GBP/JPY – UK Services PMI Up Next
Arslan Butt • 1 min read
The Japanese Yen continues to gain from strengthening safe-haven demand, amid concerns over a global trade war. The BOJ governor Haruhiko Kuroda supports the probability of a stimulus exit in keeping the Japanese Yen in demand.
UK Services PMI
For the moment, the GBP/JPY seems to trade sideways as investors are waiting for the services PMI figures from the UK at 9:30 (GMT). The score in this forward-thinking index held at 53 in January and supposed rise slightly to 53.3.
The pair is about to complete the bullish bat pattern on the daily chart with the C to D wave completing near 144.950. The leading indicators, RSI and Stochastics, are stuck in the oversold zone. The combination of a bullish bat pattern and leading indicator signifies a probability of a bullish reversal in the pair. However, we still need a fundamental reason to enter into a buy position and the UK services PMI can be the one.
GBP/JPY – Bullish Bat Pattern
GBP/JPY – Trade Idea
I will be looking to trade the rough sessions by taking a sell position below 145.750 and a buy position above 145 with a maximum of 20/25 PIP stop. Following the release of the news, we will be able to determine the future trend.