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

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

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!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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