Binary GBP/JPY could not manage to hold ground yesterday. The market turmoil is favoring the Japanese currency. It increased against its peers and it could witness further increases. The binary traders should be ready to take short positions by buying binary put options.
The binary currency pair showed some signs of weakness for the last 4 days. The daily candles formed lower highs and left big shadows behind them and it is a typical bearish signal. It is not surprising that the binary options lost more than 250 pips yesterday.
The mood of the binary traders is still bearish. So, it is highly possible that the downside pressure continue expanding in the coming days. The binary pair is testing the zone between 124.15 and 123.90. The 5 and 9 exponential moving averages are above the underlying instrument and play a role as a resistance for now. Should the binary traders be convinced that the upside way is shut, the subsequent downward trend could be violent.
Potential downside target is 122.50. It has been a resistance seven months ago before becoming the support close to a month ago.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.