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.

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
Bearish
Oil - US Crude
Bearish
Wall Street
Bullish
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
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • “The UK and EU have agreed to return to the negotiating table to try to agree a post-#Brexit trade deal. But on Friday, a joint statement said ‘significant divergences’ remained.” - BBC News #GBP
  • Multiple time frame analysis follows a top down approach when trading and allows traders to gauge the longer-term trend while spotting ideal entries on a smaller time frame chart. Learn how to incorporate multiple time frame analysis here: https://t.co/Sy3g6HGLrR https://t.co/aRfVCRZut3
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/uUh18lR3yK
  • The rising wedge is a popular reversal pattern that is predictive in nature and can give traders a clue to the direction and distance of the next price move. Incorporate the rising wedge in your trading strategy and learn more here: https://t.co/zTTk2WOrj9 https://t.co/q5oBalZieU
  • Both the S&P 500 and $EURUSD will enter the coming week with momentum to their back. What can trip up the rallies? What could keep them going? My overview for the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2020/12/05/SP-500-and-EURUSD-Rallies-Face-Different-Conviction-Questions-.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/YfEXEhkbhl
  • After the recent strength of EUR/USD, a period of consolidation is likely ahead of two critical meetings: of the European Central Bank and the European Council. Get your $EURUSD market update from @MartinSEssex here:https://t.co/Slu7tHo2a4 https://t.co/9am4szeia1
  • Triangle patterns have three main variations and appear frequently in the forex market. These patterns provide traders with greater insight into future price movement and the possible resumption of the current trend. Learn about triangles here: https://t.co/ZukLITx2KG https://t.co/gvkXqKDQyH
  • Continuation patterns can present favorable entry levels to trade in the direction of the prevailing trend. Use continuation patterns in your technical analysis here: https://t.co/TUVnO3bO1P https://t.co/vBLkMKjf4x
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/n8vpmuLdTW
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/CZePv1JEFh
USD/JPY, GBP/JPY Outlook: Will Sellers Resume Bearish Price Action?

USD/JPY, GBP/JPY Outlook: Will Sellers Resume Bearish Price Action?

2019-08-22 07:00:00
Mahmoud Alkudsi, Analyst
Share:

GBP/JPY and USD/JPY Forecast

Download for free our latest Q3 trading guides to help you build confidence when you trade on JPY, USD and other main currencies

GBP/JPY – USD/JPY- Indecisive Traders

Last week GBP/JPY tested 126.55 - its lowest levels in closed in over two and half years however, the pair reversed direction then closed in the green for the first time in six weeks. Similarly, USD/JPY tested its lowest level at 105.05 then U -turned after, closing the weekly candlestick with 0.6% profit.

This week GBP/JPY corrected higher creating a higher high at 129.67, in turn USD/JPY needs to close today’s candlestick above 106.17 to create a higher low.

The Relative Strength Index (RSI) remained flat around 40 on GBP/JPY reflecting the market’s indecision, with the seller’s loss of momentum and the buyer’s lack of impulse to start uptrend move. The oscillator stuck around 46 on USD/JPY highlighting similar hesitation in the market.

Just getting started? See our Beginners’ Guide for FX traders

GBP/JPY DAILY PRICE CHART (DEC 15, 2016 – AUG 22, 2019) Zoomed out

GBPJPY daily chart 22-08-19 Zoomed out

GBP/JPY DAILY PRICE CHART (April 15 – AUG 22, 2019) Zoomed IN

GBPJPY daily chart 22-08-19 Zoomed in

Looking at the daily chart, we notice on Friday GBP/JPY climbed to the higher trading zone 128.80 – 130.84 albeit, the pair has been trading ineffectively since the start of this week. Any rally towards the high end needs to consider the daily resistance levels underlined on the chart.

Hence, a close above the high end of the zone could push GBPJPY towards 133.40 although, the weekly resistance levels marked on the chart should be followed along the way.

On the flip-side any close below the low end of the zone could send GBPJPY towards 126.77 nonetheless, the weekly support levels underscored on the chart (Zoomed in) would be worth monitoring. See the chart to know more about the lower trading zone/s with the weekly support levels sellers would face in a further bearish move.

Having trouble with your trading strategy? Here’s the #1 Mistake That Traders Make

USD/JPY DAILY PRICE CHART (DEC 15, 2018 – AUG 22, 2019) Zoomed out

USDJPY daily chart 22-08-19 Zoomed out

USD/JPY DAILY PRICE CHART (MAY 31 – AUG 22, 2019) Zoomed in

USDJPY daily chart 22-08-19 Zoomed in

Looking at the daily chart, we notice at the start of this week USD/JPY opened with an upward gap, since then the pair has been moving ineffectively reflecting the market’s indecision. Currently, the price is moving in the trading zone 105.50 – 107.30 and eyes a test of the high end of the zone, contingent on overtaking the 107.00 handle.

Thus, a close above the high end could push USDJPY towards 108.61. Although, the weekly resistance levels and area marked on the chart (zoomed in) should be kept in focus.

On the other hand, a close below the low end may send the USDJPY towards 104.77 however, the weekly support area underlined on the chart needs to be watched closely. Further close below 104.77 could press the price even lower towards 103.07. The weekly support levels should be considered.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES