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