GBP/JPY Price Analysis: On the rise after weekly inverted hammer candle
|- GBP/JPY trades near 136.22 versus 135.75 in early Asia.
- The weekly candle favors stronger gains toward an SMA hurdle.
GBP/JPY is currently trading near 136.22, representing a 0.28% gain on the day, having carved out an inverted hammer last week.
The candlestick pattern indicates that the pullback from the October high of 137.85 has ended and the broader recovery from the September low of 133.04 has resumed.
Supporting the bullish case is the MACD histogram's crossover above zero. Also, the 14-day relative strength index (RSI) has moved into bullish territory above 50.
The pair could challenge the 50-week simple moving average (SMA) at 137.11. On the downside, the higher low of 134.40 created on Oct. 30 is the level to beat for the bears.
Weekly charts
Trend: Bullish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.