Market Outlook and Analysis (Sept2019 Week1)
Currency Pair: GBPJPY
Fundamental Analysis – GBPJPY
The CFTC reports showing that the GBP has the largest shorts as traders hedge against the weakness on a no-deal Brexit. This no-deal Brexit will probably remain as the main concern for the GBP in the coming weeks of trading.
The BOJ has announced that it will cut the bond buying in September to arrest the sliding yield. The ultra-low rates hurt the commercial bank’s profits and does more harm than good to the economy. (The rule of thumb correlation is as follow: yield up – currency up)
Technical Analysis – GBPJPY
GBPJPY D1 Chart – Horizontal and Trend Line Resistance
The pair stayed well below the resistance levels (horizontal and TL). During a consolidation mode, the natural thing to do would be to trade the Harmonic Patterns as you see them.
GBPJPY H4 Chart – Breaking out of Triangle
The H4 charts showing us a start of a possible bullish move. A break above Triangle indicates a potential move to 132.00/20, towards the completion of the Bearish Bat & Deep Crab. Watching this pair closely next week.
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