Chart of the Week
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Sharp Fall
Fri, Nov 9 2007, 17:53 GMT
by Tatsuya Kawanishi
FXstreet.com
The price movement of GBP/JPY has a shape similar to the price movement of USD/JPY. The correlation calculator clearly shows that USD/JPY and GBP/JPY is positive correlation.
| USD/JPY | GBP/JPY |
| 100.0 | 89.1 |
| 89.1 | 100.0 |
The only difference can be seen as a “Pips-range. This week USD/JPY has moved within a range of 390 pips, while GBP/JPY has fluctuated within a range of 700 pips. In other words, GBP/JPY has more volatility than USD/JPY. The first half of the week both USD/JPY and GBP/JPY moved sieways just below the resistance levels at 114.81 and 239.67 respectively. On 7th, the emerged down pressure started pushing down GBP/JPY. The downtrend line is not likely to end any time soon. Furthermore GBP/JPY showed a shap fall of over 600 pips on Nov 9th. Now the pair seems to be bouncing back after hitting at 231.03. A break of the resistance level at 232.70 may lead further correction.

Published on
Fri, Nov 9 2007, 18:08 GMT
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