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The interim downtrend has failed to continue, as today GBP/JPY experienced a huge bullish correction, and at the particular moment the currency pair is slowly approaching the 20-day SMA at 127.81, which might bring some bearish impetus. In case it is broken, then the currency couple will probably reach the weekly R1 at 128.25, which in turn might slow down the current tendency. In addition, the overall indicator outlook has changed from negative to neutral, therefore no significant trend reversals are expected in the nearest future.
Traders' sentiment
SWFX market participants are neutral about the GBP/JPY currency couple, since 49% of traders hold long positions and 51% of traders hold bearish positions. The distribution of orders shows slight uptrend expectations, as 57% of traders ordered to buy and 43% ordered to sell the British Pound.
© Dukascopy Bank SA