Bottom line: GBPJPY long term outlook remains bullish against 124.00 lows in March 2020. The currency has dropped to 134.50 levels after hitting resistance around 143.00 mark early this month. A push towards 138.00/50 might be possible before finding resistance.

 Fundamental Outlook:

USDCHF is holding above its 0.9000 lows carved earl this month. The exchange rate is trading close to 0.9080/85 levels as we prepare to publish and is expected to remain well bid over the next several weeks. The US Dollar Index (DXY) might be indicating further strength as it holds above 91.75 mark. Further, a return in risk aversion might only add to the US Dollar strength.

GBPJPY has dropped over 800 pips since 142.72 highs on September 01, 2020. The exchange rate had dropped through 134.50 yesterday before finding some bids. The Bank of England has keep rate decision unchanged to 0.1% and might be thinking to implement a negative interest rate policy.

The dovish stance by BoE, possibility of a hard or No-Brexit deal and fears of a second wave of COVID-19 infections might keep the exchange rate under pressure. GBPUSD had also dropped from its 1.3483 highs early this month to 1.2760 lows before finding some bids.

Technical Analysis:

GBPJPY bears have remained in control since hitting 142.72 highs early this month. The currency had dropped to 134.50 lows yesterday, more than 800 pips from its September highs. It has found some relief and has pulled back through 135.80 for now as bulls might be preparing for at least a correction.

GBPJPY had hit potential resistance around 143.00 mark, and since then has remained in control of bears. Earlier, the currency had dropped from 148.00 through 124.00 levels before reversing higher again. It remains to be seen if the recent drop is corrective or towards a new low below 124.00.

Immediate support is seen just below 132.00 mark and the recent upswing is between 132.00 and 143.00 levels respectively. Until now, GBPJPY seems to have retraced to fibonacci 0.618 levels of the above rally towards which is seen around 135.00/136.00 zone.

Also note that GBPJPY has managed to unfold a hammer candlestick pattern on the daily chart. It might be indicating a potential bullish bounce, at least a corrective rally. Most traders might be willing to initiate fresh longs around 135.00/50 levels, with stops below 134.50 and targeting 138.00/50 mark.

Prepared by

Harsh Japee, Technical Analyst.

GBPJPY Chart

Disclaimer:

“This market commentary and analysis has been prepared for AT Global Markets UK Ltd (ATFX UK) by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such.

You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

 Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients.

The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.”

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。