The Great Britain pound proved to be stronger than the Japanese yen after the FED’s minutes last week, when GBPJPY jumped sharply from 177.10 to 181.00. During the rest of the week the exchange rate did not leave this range. But let’s see what the chart can tell us, when looked at from the perspective of the Elliott Wave Principle.
The hourly chart of GBPJPY shows, that the decline from 185 to 177 is a five-wave impulse. According to the theory, every impulse is followed by a three-wave retracement in the opposite direction. So far, it seem we are in the middle of wave C of an A-B-C zig-zag correction. Once it is over, GBPJPY is supposed to continue in the direction of the five-wave sequence. That is why we believe, that despite the post-FED reaction, the recovery is likely to be short-lived.
Recommended Content
Editors’ Picks
AUD/USD gains momentum above 0.6500 ahead of Australian Retail Sales data
AUD/USD trades in positive territory for six consecutive days around 0.6535 during the early Asian session on Monday. The upward momentum of the pair is bolstered by the hawkish stance from the Reserve Bank of Australia after the recent release of Consumer Price Index inflation data last week.
EUR/USD: Federal Reserve and Nonfarm Payrolls spell action this week
The EUR/USD pair temporarily reconquered the 1.0700 threshold last week, settling at around that round level. The US Dollar lost its appeal following discouraging United States macroeconomic data indicating tepid growth and persistent inflationary pressures.
Gold trades on a softer note below $2,350 on hotter-than-expected US inflation data
Gold price trades on a softer note near $2,335 on Monday during the early Asian session. The recent US economic data showed that US inflationary pressures staying firm, which has added further to market doubts about near-term US Federal Reserve rate cuts.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.