Massive Sell-off in GBP/JPY – Triple Bottom Breaks - Forex News by FX Leaders

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

Posted Wednesday, May 8, 2019 by
Arslan Butt • 1 min read

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!

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
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments