FX.co ★ ckerluke | GBP/JPY

GBP/JPY. Good afternoon. GBP/JPY opened this week without surprises, and the battle between bulls and bears is still ongoing here. At the same time, the pair still hasn’t been able to choose a further direction. On the hourly chart the indicators don’t show anything specific, they are pointing in different directions, and the Bollinger channel hints at a fairly narrow sideways range within its bands, roughly between 218.00-10 and 218.65-75. On the 4-hour chart the indicators continue to point north, the pair has tested the middle Bollinger band from above and seems to have started to bounce, but there is no confirmation of the bounce. Moreover, one of the lower-window indicators has shifted into the lower zone, which suggests a possible breakout and decline. It’s just a bit early to talk about that; in any case, it’s better to wait for the actual result of the test, and then it will become clearer. In terms of my own “wish list,” I’m leaning more toward the scenario with a breakout and decline.