GBP/JPY Trades In Upward Channel, Struggling Below 50 EMA
Arslan Butt • 1 min read
The GBP/JPY trade went in our favor to help us close quick green pips today. Overall, the safe haven appeal of Japanese Yen seems to fade away as investors are trying to stay away from it for two major reasons:
- The Japanese crosses are trading in a narrow range ahead of the Bank of Japan’s monetary policy decision due to come out on Wednesday.
- Investors avoided riskier assets and migrated to buy the Greenback after Bloomberg announced that Washington is preparing to announce tariffs on all remaining Chinese imports by early December. So, investors still believe that the USA has less to lose in this trade war, which is leading them to invest in the dollar.
Technically, the GBP/JPY is trading below a strong resistance area of 144.450. The 50 periods EMA is giving a hard time to bulls who are trying to make a bullish crossover. In fact, the closing of recent candles, especially the bearish engulfing one is suggesting a selling trend in the GBP/JPY.
GBP/JPY – Trade Idea
The idea is to stay bearish only below 147.450 today to target 143.750. The violation of 143.750 can extend a bearish rally towards 143.450.