40 PIPs On GBP/JPY - Get Ready for Next Trade - Forex News by FX Leaders

40 PIPs On GBP/JPY – Get Ready for Next Trade

Posted Tuesday, March 6, 2018 by
Arslan Butt • 1 min read

The Asian session concluded with two winning forex trading signals in the Japanese crosses, a big thanks to BOJ Governor Haruhiko Kuroda for the volatility. Considering the upcoming economic event, we decided to take profit with the EUR/JPY and the GBP/JPY as well as looking to take another position in the GBP/JPY.  

Hours earlier, Kuroda was speaking at the Upper House of Parliament. Investors tried to assess the hawkishness in his remarks yet there was nothing new in his speech.

Highlights – Governor Kuroda’s Speech 

  • The monetary policy cannot affect prices that move on various factors in the short-term.
  • A distance of 2% inflation target.
  • The BOJ is mandated to achieve price stability and will use all tools available to achieve this mandate.

If you recall our earlier update on the GBP/JPY, we spotted the bullish bat pattern on the daily chart, completing the C to D wave near 144.950 before taking a reversal. The pair traded nicely as per our prediction.

GBP/JPY - Daily Chart

GBP/JPY – Daily Chart

On the 4-Hour chart, the GBP/JPY entered the overbought zone, the main reason for entering a sell position. The pair failed to break the 20 & 50 periods EMA, signifying the clear bearish bias of investors.

GBP/JPY – Trade Idea

For now, the GBP/JPY is likely to retrace back below 147 and that’s where I would like to place my second entry. Keep following to encash each trade we share.

All the best!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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