Massive Sell-off in GBP/JPY – Triple Bottom Breaks

There’s been a massive sell-off in the GBP/JPY pair from 143.80 to 143.110. Looks like the safe haven demand continues to dominate the Japanese Yen. The Japanese Yen surged to a six-week high versus the dollar as mounting worries about the trade conflict between China and the United States urged investors to take shelter in perceived safe-haven assets. What’s happening on the technical side? Let’s find out.

On the 4 hour timeframe, the triple bottom pattern was extending support to Guppy around 143.800. But the level couldn’t survive due to safe-haven demand which was triggered over trade war chaos in the market.

GBP/JPY may find immediate support around 142.650 along with resistance around 143.800. The 200 periods moving average is suggesting a bearish trend, while the RSI is heading into the oversold zone. That implies a chance of a bullish reversal.

Support Resistance
143.53 145.03
142.94 145.96
141.44 147.46
Key Trading Level: 144.45

Unfortunately, I missed the selling opportunity in GBP/JPY, but I won’t miss the buying one. Therefore, I’m setting my buy limit around 142.630.

Good luck!

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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