Bottom line: GBPJPY medium term structure is bearish against 140.00 resistance. Bears might have carved yet another lower high around 136.60 as they prepare to push prices below 124.00 mark over the next several weeks.
Fundamental Outlook:
USDCHF has been on the receiving end since July 16, 2020 and has dropped to fresh lows at 0.9238 today before pulling back. The US Dollar has lost against major currency pairs with risk sentiment on the rise lately. Traders might want to remain cautious though, as risk aversion returns.
SPX500 dropped over -1.25% closing in at 3235, Dow Jones down -1.3% closed at 26652 and NASDAQ crashed over -2.5%, closed at 10579. The initial jobless claims print over 1.4 million for the week ended July 17, higher than expected. This might just be the beginning of a larger selloff, we’ve been calling.
GBPJPY seems to have lost in the past 2 trading sessions. The exchange rate has dropped from 136.62 through 135.50 as we prepare to publish the update for the day. The anti-risk Japanese Yen has risen as Global Equity Markets collapsed yesterday. The currency might come under further pressure, going forward.
Technical Analysis:
GBPJPY seems to have managed to carve yet another potential resistance around 136.62 levels as expected and discussed earlier. Bears might be inclined to resume lower towards 124.00 lows and further, going forward.
GBPJPY had earlier dropped from 148.00 through 124.00 as an impulse wave. The drop was followed by a corrective rally towards 139.75 levels, as a normal market behavior. Since then, the currency has been looking to carve lower lows and lower highs targeting below 124.00
Also note that 139.75 was the fibonacci 0.618 retracement of the earlier drop. Bearish reversal remained high probability from there. Furthermore, please note that the recent corrective rally from 132.00 mark, also managed to terminate at the fibonacci 0.618 retracement of the drop between 139.75 and 132.00 respectively.
Traders might have initiated fresh short positions around 136.60, with protective stops above 140.00 levels and projected targets below 124.00 mark respectively. Only a break above 140.00 would change the above bearish structure.
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。
