Bottom line: GBPJPY medium term outlook remains bullish against 124.00 levels. A short term corrective drop is expected towards 129.00 levels before the rally could resume.
Fundamental Outlook:
The U.S Jobless Claims continued to rise yet again as over 5.2 million apply for befits over the last week. Over the past one month, over 20 Million Americans have applied for unemployment benefits due to the COVID-19 pandemic. The US Dollar could continue its slide against major currencies going forward.
China’s first quarter GDP shows a decline by 6.8%, a first to be recorded in past several decades. Due to the COVID-19 pandemic and resulting lock downs/quarantines, the economy has been largely affected in the first quarter of 2020. The effects would lead to several job losses and loan defaults and would be a concern to major economies.
WTI Crude Oil continued to trade below the 20.00 mark yesterday. Russia and Saudi Arabia may agree on further production cuts after the last week OPEC meet failed to curb the drop in prices.
Global Corona virus cases cross 2.1 million with over 146.855 deaths. The U.S continues to top the list at 678,144 cases in total. Over 500 new cases were registered and 24 casualties recorded.
Technical Analysis:
GBPJPY might have completed its first leg (within the corrective rally) around 135.75 levels last week. Structurally, we can expect a drop towards 129.00 at least, before GBPJPY rally could continue towards 139.00 levels.
GBPJPY had earlier dropped from 148.00 through 124.00 levels before pulling back sharply. A counter trend rally was expected towards 139.00 levels at least, before deciding further direction. The recent rally has stalled just below the fibonacci 0.50 retracement at 136.00. Ideally a drop towards 129.00 remains high probability.
Aggressive traders might be willing to consider short positions around 134.50 with a strict stop above 135.90 and potential target towards 129.00. Conservative traders might remain flat for now and wait for the potential drop to complete.
Prepared by
Harsh Japee, Technical Analyst.
GBPJPY Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
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。
