Baxia Markets
March 11, 2024

Technical Analysis Signals Strong Bearish Momentum for GBPJPY

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Amidst recent economic developments and central bank statements, GBPJPY has exhibited a persistent bearish trend over the last four trading days. Despite today's halt in the downtrend, triggered by a stronger-than-expected Japanese GDP release, key indicators suggest ongoing bearish sentiment.

Last week, statements from BoJ Governor Kazuo Ueda and board member Junko Nakagawa hinted at a potential exit from stimulus measures, aiming for the 2% inflation target. These remarks signal confidence in Japan's economic prospects, adding pressure to GBPJPY's downward trajectory.
Technical Analysis Signals Strong Bearish Momentum for GBPJPY
Technical analysis reveals bearish signals across multiple indicators. The EMA 50 and 200 indicate a widening gap, with GBPJPY trading below the EMA 200, signaling strong and growing bearish momentum. Bollinger Bands confirm the downtrend, with prices consistently below the mid-band and occasional breaks below the lower band.

Oscillator indicators, including the RSI and MACD, further support the bearish outlook. The RSI fluctuates between 30% and 50%, indicating persistent bearish pressure, while the MACD's histogram and signal line remain below the zero line.

Key levels to monitor include the EMA 50, upper Bollinger Band, and EMA 200. A breach above these levels, especially breaking above the upper band, could signal a potential reversal or easing of bearish momentum. However, the overall outlook for GBPJPY remains strongly bearish, with short-term price action likely to continue testing new lows.

Key Takeaways:

1. GBPJPY trend has been bearish, with recent economic data and central bank statements adding pressure.
2. BoJ's hints at stimulus exit and confidence in economic prospects contribute to GBPJPY's downward momentum.
3. Technical indicators, including EMAs, Bollinger Bands, RSI, and MACD, confirm the prevailing bearish sentiment.
4. Key levels to watch include the EMA 50, upper Bollinger Band, and EMA 200 for potential signs of reversal.
5. Overall, GBPJPY's bearishness remains strong, with short-term price action expected to continue testing new lows.


Key Economic Releases to Watch Today


Actual 0.1% vs Forecast -0.1% vs Previous -0.7%


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