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.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Bearish
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
USD/JPY
Mixed
Gold
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
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • #USDollar May Rise if US #GDP Data, #TradeWar Risks Spook Markets https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2019/09/21/US-Dollar-May-Rise-if-US-GDP-Data-Trade-War-Risks-Spook-Markets.html
  • Asia #FX markets will be closely watching for developments in the ongoing China-led RCEP trade negotiations against the backdrop of slower global growth and rising protectionism. Get your market update from @ZabelinDimitri here: https://t.co/HZ8Loqj3Ey https://t.co/g332JcY549
  • What are trading journals? How can you create one and reduce your #FOMOintrading? Find out: https://t.co/0akgWbyJEw https://t.co/Xyy7rxZHip
  • 💷 $GBP British Pound Weekly Technical Outlook My latest take on Sterling price action as #Brexit risk comes back into scope. Commentary on the charts and implied volatility table included. More via @DailyFX ➡️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/09/21/gbp-to-usd-price-analysis-british-pound-eyes-rise-in-brexit-risk.html https://t.co/Hd6LAurfqG
  • The Singapore Dollar is driven by the Monetary Authority of Singapore, which manages exchange rate instead of short-term interest rates. Learn more on the $SGD and how to trade it from @ddubrovskyFX here: https://t.co/eWLM9XZs5Y https://t.co/SCHhCQhlFV
  • What are the common trading myths which can create #FOMOintrading? Find out: https://t.co/sDbOusCpzg
  • Walk through the new and improved IG Client Sentiment Data with @PeterHanksFX here: https://t.co/FTm5nXIAmq
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/Lk229DNh6n
  • Catch up with @JStanleyFX as he walks through some FX price action setups post-FOMC. Get your recap here: https://t.co/MD2PB33t0L
  • What is the @ecb (European Central Bank)? What are the key mandates of the bank and how can it affect the #forex market? Find out: https://t.co/romV4hPQJv https://t.co/4nlCaUNhpD
USD/JPY, GBP/JPY Forecast: Price May Rally Above Weekly Resistance

USD/JPY, GBP/JPY Forecast: Price May Rally Above Weekly Resistance

2019-08-29 09:47:00
Mahmoud Alkudsi, Market Analyst
Share:

GBP/JPY and USD/JPY Outlook

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- Correcting Higher

Last week, GBP/JPY corrected higher creating a higher high at 130.70 – its highest level in three weeks however, the pair closed on Friday with a Doji pattern reflecting the market’s indecision at this stage.

On the other hand, USD/JPY behaved similarly creating a higher high by the end of last week at 106.73. The pair closed in the red the weekly candlestick with 0.8% loss.

This week, the Relative Strength Index (RSI) has remained flat around 45 on both pairs, indicating the downtrend loss of momentum on one side and the lack of impulse to start uptrend move on the other.

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

GBP/JPY DAILY PRICE CHART (DEC 15, 2016 – AUG 29, 2019) Zoomed out

GBPJPY price daily chart 29-08-19 Zoomed out

GBP/JPY DAILY PRICE CHART (May 25 – AUG 29, 2019) Zoomed IN

GBPJPY price daily chart 29-08-19 Zoomed in

Looking at the daily chart, we notice at the start of this week GBP/JPY opened with a downward gap below the low end of the trading zone 128.80 – 130.84. However, the price retuned back to the same zone closing mentioned gap.

Yesterday, GBP/JPY tested again the low end of current trading zone then closed above eyeing a test of the high end. Thus, a close above the high end could send the price towards 1044.40 although, the weekly resistance levels marked on the chart (zoomed in) need to be followed closely.

On the flip-side, if GBP/JPY closes below the low end of the zone, this could resume bearish price action towards 126.77 . Nonetheless, the weekly support levels underscored on the chart should be kept in focus. See the chart to find out more about the lower trading zone/s with the weekly support levels the pair would encounter if the price falls further.

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

USD/JPY DAILY PRICE CHART (April 15, 2017 – AUG 29, 2019) Zoomed out

USDJPY price daily chart 29-08-19 Zoomed out

USD/JPY DAILY PRICE CHART (June 4 – AUG 29, 2019) Zoomed in

USDJPY price daily chart 29-08-19 Zoomed in

Looking at the daily chart, we notice at the start of this week USD/JPY opened with a downward gap then returned to the same old trading zone 105.50 -107.30, closing mentioned gap and eyeing the high end of the zone (similarly to GBP/JPY).

Thus, a successful close above the high end of the zone may push USD/JPY towards 108.61. However, the weekly resistance levels underscored on the chart would be worth monitoring. See the chart to know more about the higher trading zone with the weekly resistance levels the price would face in a further bullish move.

In turn, any close below the low end of the zone could send the price towards 104.77. Further close below this level could see USD/JPY trading even lower towards 103.76. Although, the weekly support levels underlined on the chart (zoomed in) should be considered.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES

News & Analysis at your fingertips.