Technical analysis of the GBP/JPY pair
Technical analysis of the GBP/JPY pair covers chart patterns, technical indicators and historical price movement. Some investors believe that it is possible to identify the forward price movement of the pair through this form of analysis.
We have listed the three main types of technical analysis you can use to study the GBP/JPY pair in the following sections.
Technical indicators are mathematical calculations, expressed as lines on a price chart, that can help you identify certain signals and trends in your chosen market.
There are different types of technical indicators, including leading indicators and lagging indicators.
In the case of the GBP/JPY pair, a leading indicator is a forecasting signal that predicts future price movements in the pair. A lagging indicator looks at the past trends of the currency pair and indicates its trend. You can use your knowledge and risk appetite to decide which indicators are best suited for your Forex market trading strategy.
Discover the best trading indicators
A trend chart is a shape in a price chart that helps to guess the price movement of a currency pair, based on its previous movement. In other words, it will signal different trends in the GBP/JPY pair.
Some chart trends are more suited to a market as volatile as Forex. It is therefore important to know which chart trend is best suited for trading and investing in the GBP/JPY pair, so as not to miss an opportunity to make profits.
Candlesticks or candles indicate the price movement of an asset, for example the GBP/JPY pair, over a given period. The shape and color of candles can be used to help predict future market action.
The candlesticks show price action from one minute to one day, according to the price chart. They display four different price levels that an asset has reached during the specified period: its lowest price, its highest price, and the opening and closing prices.