GBP/JPY: The bulls climbs towards multi day tops.

General overview: A combination of factors pushed GBP/JPY higher for the second straight session on Friday. The risk-on mood undermined the safe-haven JPY and remained supportive of the move. Bulls shrugged off China’s sanction on UK entities and now look forward to UK Retail Sales. The GBP/JPY cross continues scaling higher through the Asian session and climbed to three-day tops, around the 150.30-35 region in the last hour. The pair keeps on rising towards the buy side in the market, the pair makes its volatility toward the positive momentum in the chart, and trying the climbs up further more upside in the chart. The cross built on the previous day’s strong recovery move from the vicinity of monthly lows and gained some  positive follow-through traction for the second consecutive session on Friday. The Japanese yen are trying to create the demand in the market and carrying through the north side in the market.

Technical analysis: From the technical point of view we can say that market creates positively high side buying in the market and stand towards the buy side in the market. Thursday’s upbeat US Initial jobless claims, along with progress on vaccination rollouts boosted investors’ confidence.  The British pound benefitted from a modest US dollar profit-taking slide from multi-month tops. This was seen as another factor that provided an additional lift to the GBP/JPY cross. Bulls seemed rather unaffected by China’s move to impose sanctions on nine individuals and four organizations in UK. On the 4 hourly charts market is making the upwards rising in the market and creates the buy position in the market. The pair is towards the side and creates the rounding bottom in the chart. The pair fined its breakout level 148.56 in the chart and after certain point the pair is trading toward the buy side in the market. The pair fined buys side aggressive after crossing 50 Ema level and travels towards high side in the market. The indicator is also towards the buy side in the market RSI is favoring the 50 level and MACD also try to create buy side in the market. The support level will be 149.90 followed by 149.30 and resistance will be 150.70 followed by 151.30.

Trade idea : Traders will sit on the buy side at level 150.35 target will be 150.60 followed by 151.25 and stop loss will be 149.80

 



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