How to trade and invest in GBP / JPY (pound-yen)

Technical analysis of the GBP / JPY pair

The technical analysis of the GBP / JPY pair covers chart patterns, technical indicators and historical price movement. Some investors believe 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 that you can use to study the GBP / JPY pair in the sections below.

Technical indicators

Technical indicators are mathematical calculations, expressed as lines on a price chart, which can help you identify certain signals and trends in your chosen market.

There are several types of technical indicators, including leading indicators and lagging indicators.

In the case of the GBP / JPY pair, a leading indicator is a forecast signal that predicts the pair’s future price movements. A lagging indicator examines 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 to your Forex trading strategy.

Discover the best trading indicators

Graphic trends

A trend chart is a shape in a price chart that helps guess the price movement of a currency pair, based on its previous movement. In other words, it will signal several trends in the GBP / JPY pair.

Some graphic trends are more suited to a volatile market like Forex. It is therefore important to know which chart trend is most suitable for trading and investing in the GBP / JPY pair, in order not to miss the opportunity to make profits.

candlesticks

Candlesticks or candles indicate the price movement of an asset, for example the GBP / JPY pair, over a certain period. The shape and color of the candles can be used to predict future market action.

Candles 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: the lowest price, the highest price, and the opening and closing prices.

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