Pin Bar on GBP/JPY H4 Chart

GBP/JPY H4 Chart

A classic pin bar (reversal pattern) formed on the GBP/JPY chart. The long wick candle reaching up to prior support level of 1.4857 gave additional confirmation to the bearish signal.

Price fell to find support at the 21 period exponential moving average (EMA) marked in red and is currently consolidating.

GBP/JPY is one of the most volatile currency pairs with an average daily range of 159 pips over the last 10 weeks.

Pressure is downward in GBP/JPY, being in a downtrend across multiple timeframes (4 hour, daily and weekly).

Potential support lies below around the 50 period simple moving average (marked in blue) and the prior lows of 144.94.

On the economic docket, the UKĀ Annual Budget Release, announced tomorrow at 7:30AM ET could be a significant market mover for GBP.