Weak GBP, Strong JPY

The JPY will find buyers if the second wave of COVID-19 keeps growing in pace. Global cases now top 17 million after five of the last seven days saw one-day jumps of greater than 250,000 infections.

For the GBP there has still been very little progress made in Brexit talks as both the EU and the UK steel their positions ahead of final negotiations in the Autumn. The official deadline for a deal to be arranged is by year-end, but the end of October is the functional deadline to allow enough time for any deal to be implemented. This means that negotiations should start again in September. With expectations poor about a resolution rallies higher in the GBP should find sellers.

With time running out to arrange a deal the GBPJPY should find sellers if it manages to make its way up to 138.00 and the descending weekly trend line.

We expect this trade to play out between now and the next 4-6 weeks.


Trade Risks:

  • If we see a slowdown in infection rates across the world and a second wave is averted this will invalidate this outlook.

  • If we get positive Brexit news this will invalidate this outlook.



Learn more about HYCM


High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD weaker ahead of RBA’s monetary policy decision

The Aussie is weak, despite receding dollar’s demand and the robust performance of US indexes. Coronavirus developments hit the commodity-linked currency ahead of the RBA.


Gold: This just might be as good as it gets for gold

The price of gold is trading at $1,975 within a range of between $1,960.54 and $1,986.76 at the time of writing, virtually flat on the day in consolidation having eeked out a fresh all-time high.

Gold News

USD/JPY struggling to retain the 106.00 level

The USD/JPY pair traded as high as 106.46 on Monday but struggles to retain gains above the 106.00 level amid lack of dollar’s demand.


Ethereum on its way to regaining $400 while BNB hit a new high at $22.5

BTC/USD is more stable than other coins right now but has been able to recover from its crash towards $10,500. It is currently trading at $11,369 and faces very little resistance until $14,000.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News

Forex Majors