Bottom line: GBPJPY medium term outlook remains bearish against 139.75 resistance. The currency pair has managed to carve a lower high around 136.00 as bears prepare to push lower towards 124.00 levels at least.

 Fundamental Outlook:

USDCHF has managed to rally by over 100 pips in the last 2 trading sessions touching 0.9467 levels yesterday. The return of a possible risk aversion helped US Dollar gain across major currencies. It might just be the beginning, as the US Dollar Index also managed to rally close to 96.40 mark.

COVID-19 infections continue to rise across the US and Asian Countries (India specifically as it crosses the 1 million mark). The worst affected states in the US, Florida and Texas might be considering partial lock downs from today. Global Equity Markets remain vulnerable for a steep decline going forward.

GBPJPY exchange rate remained flat around 134.60, as GBP failed to gain despite an improvement in the UK job market yesterday. Sterling also declined against the USD amidst rising US-China tensions and potential second wave of COVID-19 infections. The US Dollar might regain its dominance if risk assets sell off.

Technical Analysis:

GBPJPY remains in control of bears as they hold below 139.75 resistance and also carve a lower high around 136.00 levels. The currency remains poised to push lower towards 124.00 levels at least before finding some support again.

GBPJPY had dropped from 148.00 through 124.00 levels earlier as an impulse wave. Ideally, an impulse is followed by a corrective wave in the opposite direction. GBPJPY managed to carve a corrective rally towards 139.75 levels, which is also the fibonacci 0.618 retracement of the earlier drop.

Most traders might have initiated fresh short positions since 139.00 levels, with a protective stop above 143.00 mark. The projected targets might be seen towards 129.00/130.00 at least if not towards 124.00 levels going forward. Only a break above 142.90 would change the structure.

Prepared by

Harsh Japee, Technical Analyst.

GBPJPY Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。