Originally Updated: 06:57am
Currency Pair: GBP/JPY
Sentiment: Bearish
Market focus:
In today’s trade set up we will be focussing on short term selling opportunities on the GBP/JPY.
Fundamentals:
After a very disappointing GDP number from Japan the markets are now potentially facing a scenario where members of the Government start to lose faith in the famed ‘abenomics’ programme, which is designed to get the recovery back on track. This could make the election a big risk event for the markets and create uncertainty which could trigger at least some limited safe haven flows which of course leads to the purchase of JPY. The GBP is suffering from some negative sentiment after last weeks inflation report and this combination of things could give us a short term opportunity to profit.
Technicals:
We have a nice confluence zone at 182.60-182.65. This should offer short term resistance for any pullback.
Stop loss could be placed at 183.35
Take profit target: 181.70
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
Recommended Content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.