Ueda confirms buy signal on GBPJPY

By Tomasz Wisniewski|

Published: February 24 2023, 12:53 GMT+0

Ueda confirms buy signal on GBPJPY


BOJ Gov-Designate Ueda’s Friday comments were perceived as dovish and caused the weakening of the Japanese currency. This is certainly welcomed by the buyers on the GBPJPY, where we have a handsome bullish signal. The speech by Mr. Ueda came right in time.

Since the end of December, GBPJPY was inside of a symmetric triangle pattern. This triangle ended in the middle of this month with a breakout to the upside. The initial upswing was mild and the price stopped early on the horizontal resistance at 161.8 (yellow). A bigger upswing happened on Tuesday and was largely caused by great PMIs of the British economy.

The sellers then managed to correct the price again, reaching the upper line of the triangle and this time from the top. Along with the yellow area, this is the closest and most important support at the moment. GBPJPY respected this support with a big help from Mr. Ueda. The price is currently creating a nice bullish candle with a positive outlook. As long as we stay above today’s lows, the sentiment remains positive. Price closing a day below the upper line of the triangle would be a legitimate sell signal but chances of that happening are now rather limited.

Source: https://www.axiory.com/analytics/technical-analysis/ueda-confirms-buy-signal-on-gbpjpy