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The bearish reaction, which occurred yesterday, successfully managed to continue, as today GBP/JPY experienced another decline, and at the particular moment the currency couple is slowly moving towards the weekly R1 at 127.08, which is likely to bring some bullish impetus. If it fails to stop the downtrend, then the price will probably reach the 200-day SMA at 126.25, which in turn is expected to reverse the current tendency. In addition, the overall indicator outlook is neutral, therefore no significant trend reversals are expected in the nearest future.
Traders' sentiment
SWFX market participants are neutral about the GBP/JPY currency pair, since 45% of traders hold bullish positions and 55% of traders hold bearish positions. The distribution of orders, however, shows slight uptrend expectations, as 62% of traders ordered to buy and 38% ordered to sell the British Pound.
© Dukascopy Bank SA