GBP/JPY testing 50 periods EMA – Is it good time to go long? - Forex News by FX Leaders

GBP/JPY testing 50 periods EMA – Is it good time to go long?

Posted Wednesday, September 26, 2018 by
Arslan Butt • 1 min read

The market is a bit muted at the moment as the traders are saving their bets for the FOMC meeting and the Fed Fund Rate. However, the team FX Leaders managed to grab green pips in GBP/JPY earlier today. The Japanese Yen weakened after the Bank of Japan reported a slower inflation. The CPI rose at a 0.5% rate vs. 0.6% forecast, which caused a slight bearish impact on the safe haven currency.

What’s next?

The GBP/JPY is testing the 20 and 50 periods EMA at 148.350 and that’s exactly the level where we close our selling trade today. The RSI is trading below 20, signifying that the market is oversold. It means that the sellers may get exhausted soon and we may see bulls entering the market. The GBP/JPY has also formed a tweezers bottom pattern at 148.350 support which typically causes a bullish reversal in the market.

Speaking about the trading levels, the pair has a significant support at 148.350 and we may see a bullish reversal above it. Whereas, the bearish breakout of this level may cause further selling until 147.750.

Support Resistance
148.12 149.34
147.36 149.79
146.15 151
Key Trading Level: 148.57

GBP/JPY – Trade Plan

The idea is to open a sell position below 148.300 with a stop above 148.650 and take profit at 147.800. Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of