FX.co ★ ckerluke | GBP/JPY

GBP/JPY. Good afternoon. The pound/yen has started to slowly turn south today. But it’s still too early to say that the bears have completely taken the initiative into their own hands. Technically, on the hourly chart the indicators have formed a sell signal, and the Bollinger Bands channel is still expanding here, which suggests the current downward impulse may continue. So we can quite possibly walk down to around 217.25–30 in the short term. On the 4-hour chart the indicators are drawing a new sell signal, but it’s still too early here to talk about the development of a bearish trend. The Bollinger Bands channel is still hinting at a sideways move within its bands. The pair is now at the lower band, so there is a chance to move up to the upper one. But in that case, the sells will be cancelled. Overall, I’m more inclined to expect the development of a southern (downward) trend, but this is still just “wishful thinking”; in any case, it’s worth waiting for more complete confirmation from the technical side.