Bullish Pennant Pattern in GBP/JPY

Dan Blystone TradersLog.com

A pennant pattern has formed on the GBP/JPY daily chart. A well defined flagpole was made with the sharp up move beginning on October 10th, which has been followed by a consolidation in price since October 18th. Since the pennant is in the context of an uptrend, it is technically a bullish pattern. GBP/JPY traders will be eyeing a potential breakout to the upside.

Brexit jitters put the brakes on the rally in sterling. On October 22nd, British lawmakers opposed Prime Minister Boris Johnson’s plan to pass Brexit legislation through parliament in only three days. Brexit has now been pushed back to January 31st 2020 and a UK general election is set to take place on December 12th.

Meanwhile, the Japanese Yen is also under pressure as the Bank of Japan adopted a dovish stance at their latest policy meeting. At the October meeting, the BoJ kept monetary policy on hold and signaled that further interest rate cuts are possible. The Japanese central bank decided to keep its short-term rate target at -0.1% and the 10-year government bond yield at around 0%.

Author

Dan Blystone

TradersLog.com

Experience Dan Blystone began his career in the trading industry in 1998. He worked as an arb clerk on the floor of the Chicago Mercantile Exchange (CME), flashing orders into the currency futures pits.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.