Fundamental Analysis:- We are looking for a weaker GBP next week as CPI is expected to drop slightly y/y although this will not have a long term effect on the value of the GBP; Brexit negotiations could still weigh heavily on the GBP. There is talk of a second referendum if Parliament don't get the deal they want to leave the European Union which could effect the GBP either way. On the JPY side of the equation;- although data from Japan has not been outstanding it is more the safe haven quality of the currency that I am interested in. With the USD weakening against most major currencies investors could start looking to JPY for stability. At the current price of over 152.00 I would consider the GBP to be overvalued against the JPY
Technical Analysis:- As you can see from the chart the downside in the GBP/JPY last week was met by a 61% Fibonacci retracement where the price seems to have found resistance. I am expecting the GBP/JPY to have another leg down to retest support around the 14700 level.
Trade price :- on market open as long as it does not open above 15280 preferably between 15200 and 15230.
stop loss:- Above 15370
take profit :- 14750
Technical Analysis:- As you can see from the chart the downside in the GBP/JPY last week was met by a 61% Fibonacci retracement where the price seems to have found resistance. I am expecting the GBP/JPY to have another leg down to retest support around the 14700 level.
Trade price :- on market open as long as it does not open above 15280 preferably between 15200 and 15230.
stop loss:- Above 15370
take profit :- 14750