Bullish Bat Underpins GBP/JPY – UK Services PMI Up Next

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.

Technical Outlook

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.

Stay tuned!