GBPJPY: Breakout, Retest, Down...

In my recent ideas I’ve noted JPY strength resuming and this is evident in the performance last week, and we can see this when looking at the JPYWCU chart which is like DXY for the Yen. We can see what could be a higher low forming and a fourth retest of the resistance around 0.005350 which could break.

We’ve seen out-performance of the Yen against many crosses in the past week, which has generated good pips, it’s too early to suggest a strong recovery (especially as BoJ clearly want a weaker currency to support exports), however they have an economy that when recessions start to hit, I believe they’ll fair better.

All crosses against yens are at their high points, this doesn’t mean they can’t go higher, but money flows and I believe the shift is starting.

I’m expecting GBP weakness over the coming weeks due to high inflation and massive threat of recession, and definitely this week against the Yen, so looking for shorts around 181.4.

First target will be 167 area.

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