Sideways Trading in GBP/JPY – is it Gonna Cover the Gap?
Arslan Butt • 1 min read
Today, the market is trading the Risk-off sentiment over the uncertainty triggered by the US President Donald Trump. The US President Trump threatened to hike tariffs on $200 billion worth of Chinese imports as the trade talks are taking more time than expected. As a result, the market has experienced a gap in safe-haven assets such as gold and Japanese Yen.
- Similarly, the GBP/JPY has also gapped downward. The British Pound is muted in the wake of May Day Holiday, but the Japanese Yen remains active due to safe-haven appeal.
- The RSI and Stochastics are below 50, suggesting a bearish bias of the market.
- The GBP/JPY pair is likely to gain support around 144.800, extended by the 50 EMA.
- The immediate resistance prevails around 145.500 and 146.460 today.
Key Trading Level: 145.9
GBP/JPY – Trading Signal
For now, we have shorted the GBP/JPY below 145.500 with a stop loss above 145.69 and take profit around 144.99.