- GBP/JPY testing connection resistance; Outlook constructive while above monthly open
- Check out a 2018projections in a Free DailyFX Trading Forecasts
- Join Michael for Live Weekly Strategy Webinars on Mondays at 12:30GMT
The British Pound has rallied some-more than 4.7% opposite a Japanese Yen given a Mar lows with a allege now contrast a pivotal connection insurgency range. While a broader opinion does sojourn weighted to a topside, a convene might be during risk near-term while next this threshold.
GBP/JPY Daily Price Chart
Technical Outlook: In this week’s Technical Perspective, we highlighted a connection insurgency section in GBP/JPY around 152. The segment in concentration is 151.84-152.17 where a 61.8% retracement of a yearly operation converges on a 2017 high-day tighten and slope resistance. The evident allege is exposed while next this threshold.
New to Forex Trading? Get started with this Free Beginners Guide
GBP/JPY 240min Price Chart
Notes: A closer demeanour during cost movement see’s GBP/JPY trade within a proportions of a near-term ascending channel arrangement with a top together serve highlighting a 151.84-152.17 insurgency zone. A crack above this segment would expected fuel accelerated gains targeting 152.86, a 2017 high during 153.41 and a 78.6% retracement during 154.12.
Interim support rests during 150.60 with bullish cancellation now lifted to a monthly open during 148.96– a mangle next this turn would advise a incomparable improvement is underway targeting a low-day tighten during 145.84 (not a adored scenario).
Why does a normal merchant lose? Avoid these Mistakes in your trading
Bottom line: Prices are contrast up-trend insurgency and a crack by this segment would be indispensable to keep a evident concentration higher. That said, IF GBP/JPY is indeed streamer higher, demeanour for halt support within this near-term descending structure on a pierce reduce from here. Ultimately we’ll preference shopping pullback’s targeting a crack of this vicious insurgency zone.
For a finish relapse of Michael’s trade strategy, examination his Foundations of Technical Analysis series on Building a Trading Strategy
GBP/JPY IG Client Positioning
- A outline of IG Client Sentiment shows traders are net-short GBPJPY- a ratio stands during -1.01 (49.7% of traders are long) –extremely diseased bullishreading
- Long positions are 2.5% reduce than yesterday and 0.4% aloft from final week
- Short positions are 7.3% reduce than yesterday and 0.7% reduce from final week
- We typically take a contrarian perspective to throng sentiment, and a fact traders are net-short suggests GBPJPY prices might continue to rise. Yet traders are reduction net-short than yesterday and compared with final week. Recent changes in view advise that a stream GBPJPY cost trend might shortly retreat reduce notwithstanding a fact traders sojourn net-short.
See how shifts in GBP/JPY retail positioning are impacting trend- Learn some-more about sentiment!
Relevant Data Releases
Other Setups in Play
- Weekly Technical Outlook: Pending U.S. Dollar Trade Setups
- USD/CAD Technical Outlook: Trade Setups for NFP, Canada Jobs
- AUD/JPY Price Analysis: Is a Correction Over?
- AUD/USD Technical Outlook: Price Tests Critical Uptrend Support
- EUR/USD Uptrend Remains Viable If Price Can Hold Above these Levels
– Written by Michael Boutros, Currency Strategist with DailyFX
To receive Michael’s research directly, greatfully sign-up to his email placement list
Follow Michael on Twitter @MBForex or hit him during email@example.com