© Dukascopy Bank SA
Today GBP/JPY experienced a significant bearish reaction, and the currency couple has already managed to cross the 200-day SMA, and now the price is approaching the weekly S1 at 125.74, which is very likely to bring some bullish impetus. If it is breached, then the currency pair might reach the weekly S2 at 124.68, which in turn will probably reverse the prevailing tendency. In addition, the overall indicator outlook is bullish, therefore supporting the potential trend reversal in the nearest future.
Traders' sentiment
SWFX market participants are neutral regarding the potential strength of the British Pound, since 49% of traders hold bullish positions and 51% of traders hold bearish positions. The situation with orders, however, spots slight uptrend expectations, as 66% of traders ordered to buy and only 34% ordered to sell the sterling.
© Dukascopy Bank SA