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The interim bullish trend, which started a couple of days ago, has failed to continue, as today GBP/JPY rebounded from the monthly R1, and at the particular moment the currency pair experiences a slight bearish reaction, which is slowly heading towards the monthly PP at 128.16, which might slow down the downtrend. If it is breached, then the price is likely to reach the 20-day SMA at 127.62, which in turn will probably change the direction of the prevailing tendency. In addition, the overall indicator outlook is positive, therefore a soon trend reversal should be expected.
Traders' sentiment
SWFX market participants are pessimistic regarding the GBP/JPY currency pair, as only 26% of traders hold long positions and 74% of traders hold short positions. The distribution of orders is rather neutral, since 58% of traders ordered to buy and 42% ordered to sell the British Pound
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