News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • RT @KyleR_IG: Restrictions to be eased in Victoria as the state records three new COVID-19 cases https://t.co/i7ED0r6zuP
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.88% Silver: -0.04% Gold: -0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/JOgCXf4qhk
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/AeBDanqM4V
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.19% 🇦🇺AUD: 0.06% 🇨🇦CAD: 0.04% 🇬🇧GBP: -0.04% 🇪🇺EUR: -0.05% 🇨🇭CHF: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/LIX3ToP9Bc
  • IG Client Sentiment Update: Our data shows the vast majority of traders in USD/CHF are long at 75.86%, while traders in France 40 are at opposite extremes with 82.70%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fvWYlP8HEP
  • Dow Jones Retreats Ahead of FOMC, Nikkei 225 and ASX 200 Open Lower https://www.dailyfx.com/forex/market_alert/2021/06/16/Dow-Jones-Retreats-Ahead-of-FOMC-Nikkei-225-and-ASX-200-Open-Lower.html https://t.co/2sjz9ZpHgH
  • 🇦🇺 Westpac Leading Index MoM (MAY) Actual: -0.06% Previous: 0.19% https://www.dailyfx.com/economic-calendar#2021-06-16
  • MSCI #EmergingMarkets Index (EEM), which is heavily weighed in Chinese stocks, has been struggling to breach the 54.97 - 55.34 inflection zone A hawkish #Fed (especially amid ebbing #PBOC liquidity measures), could risk weighing the index Breach under 20-day SMA exposes MAR low https://t.co/4WQED01FWV
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/Lt3Z0TODqu
  • Natural gas spot prices have been on the rise, recapturing a key trendline, following the EIA’s Short-Term Energy Outlook. Where can prices head from here? Find out from @FxWestwater here:https://t.co/yK48nZD1ag https://t.co/CPBSrdO485
GBP/JPY Technical Analysis: Bending Support Above the Brexit Low

GBP/JPY Technical Analysis: Bending Support Above the Brexit Low

James Stanley, Senior Strategist

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

  • GBP/JPY Technical Strategy: Prior bullish move continuing to congest; near-term choppiness.
  • With Central Bank meetings on the docket from both the U.K. and Japan in the coming week, this pair will likely see heightened volatility.
  • If you’re looking for additional trade ideas, check out our Trading Guideand if you’re looking for shorter-term ideas, check out our SSI indicator.

In our last article, we looked at the confluent support structure showing in GBP/JPY as a rising trend-channel’s lower-boundary aligned with a batch of Fibonacci levels north of the 135-psychological figure in the pair. And while price action was unable to keep up with the torrid pace of momentum that was showing in that bullish channel, prices have yet to show a definitive down-side break significantly below the 135-handle in the pair.

As we noted last week, the level at 133.20 has been a key area in GBP/JPY as this was the ‘Brexit swing-low’ in the pair; while also coming in as a swing-high and then swing-low two months later when GBP/JPY was marching higher. While price action resides above this level, traders may want to assign a bullish bias to the pair under the premise that a longer-term top-side reversal may be developing after prices were pushed to historically low levels around the panic of the Brexit referendum.

Traders looking to do anything in GBP/JPY would likely want to take note of upcoming headline risk. Tomorrow brings a BOE rate decision and next week has the Bank of Japan; so both represented currencies in the pair could see a pickup in volatility over the next seven days and in a pair like GBP/JPY, this could be significant.

For traders looking to get long, an aggressive entry could be sought should today’s support confirm with the low around the 135-pscychological level. This would be above the prior swing-low at 134.45, and this early indication of higher-lows could potentially prelude a continued top-side move in the pair. For those wanting to tread a bit more conservatively, awaiting a break of swing-high resistance at 136.61 to prove continuation potential could act as an ‘activator’ for the approach, at which point the trader can look to buy a higher-low near the same batch of confluent support in the 135-135.72 region.

For the bearish side of the pair, the 133.20 level could demarcate the ‘line-in-the-sand’ for such approaches; and should price action break below this level, as driven by either BOE or BOJ, this could open the door for bearish stances.

GBP/JPY Technical Analysis: Bending Support Above the Brexit Low

Created with Marketscope/Trading Station II; prepared by James Stanley

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES