GBP/JPY – Have we bottomed out?
What we have is a 4-hour chart showing an inverse head and shoulder breakout at a time when the 5-wave declining structure appears to have been completed on the weekly time frame.
Also note – we have a bullish engulfing pattern on the weekly timeframe.
Overall, the technicals tell me the recent low of 128.82 is unlikely to be challenged any time soon, unless we have a serious risk-off event.
On macro front, a double barreled stimulus in Japan – fiscal + monetary could translate into a Yen sell-off, while Bank of England (BOE) is now effectively data dependent. If the UK data dose not point to worsening of the economy post Brexit vote, the GBP/JPY could continue its move higher.
In today’s finance show, we had Steven Woodcock, Senior Market Analyst at Plutus FX, talk about FX markets in general with special emphasis on GBP and JPY. He believes, Yen may have turned the corner now and GBP/JPY is heading towards 200 in the long run. Check out the video here - www.youtube.com/watch?v=u1jnOYjX...
What we have is a 4-hour chart showing an inverse head and shoulder breakout at a time when the 5-wave declining structure appears to have been completed on the weekly time frame.
Also note – we have a bullish engulfing pattern on the weekly timeframe.
Overall, the technicals tell me the recent low of 128.82 is unlikely to be challenged any time soon, unless we have a serious risk-off event.
On macro front, a double barreled stimulus in Japan – fiscal + monetary could translate into a Yen sell-off, while Bank of England (BOE) is now effectively data dependent. If the UK data dose not point to worsening of the economy post Brexit vote, the GBP/JPY could continue its move higher.
In today’s finance show, we had Steven Woodcock, Senior Market Analyst at Plutus FX, talk about FX markets in general with special emphasis on GBP and JPY. He believes, Yen may have turned the corner now and GBP/JPY is heading towards 200 in the long run. Check out the video here - www.youtube.com/watch?v=u1jnOYjX...
