Queens Speech, European Summit, Brexit - GBPJPY
In the United Kingdom, Queen Elizabeth II opened the new session for British Parliament with a speech outlining the government’s plans.
The 2-day European Summit kicks off on Thursday October 17th, where Prime Minister Johnson will try to seal a Brexit Deal. When he returns to Britain, an emergency meeting will take place in the House of Commons for parliament to debate the Brexit deal.
Although there are still details to be worked out, such as with the Northern Ireland backstop, this is the closest thing to a Brexit deal that the markets have seen in a while.
The British Pound rose by over 4% against the Japanese Yen on Thursday and Friday of last week.
GBP JPY 4HTF shows us a TK cross that initiated a rally on October the 10th. We have a local trend line up. The pair met resistance in the vicinity of 137.469. Monday opened with a slight gap down. The price retraced but bounced with a bullish pinbar from support, that coincides with the local trend line up.
Wait for the price to resume movement up, by breaking above resistance at 137.469. Further targets up may be found in the areas of resistance, first at the 61.8% Fibo 138.878, then 139.743 and further up we have resistance at 141.507.
If Brexit negotiations or the US-Sino trade talks fail, and risk aversion turns investors to safe haven Yen, the pair will trade lower, with targets down at the 38.2% Fibo 134.167 and then 23.6% Fibo at 131.252.
Fundamentally, tomorrow we will have the release of Japanese Industrial Production at 7:30am GMT+3 and UK Employment at 11:30. On Wednesday UK CPI at 11:30am GMT +3. Same time on Thursday, 11:30 am we have UK Retail Sales and on Friday Japan CPI at 2:30am GMT+3.
The 2-day European Summit kicks off on Thursday October 17th, where Prime Minister Johnson will try to seal a Brexit Deal. When he returns to Britain, an emergency meeting will take place in the House of Commons for parliament to debate the Brexit deal.
Although there are still details to be worked out, such as with the Northern Ireland backstop, this is the closest thing to a Brexit deal that the markets have seen in a while.
The British Pound rose by over 4% against the Japanese Yen on Thursday and Friday of last week.
GBP JPY 4HTF shows us a TK cross that initiated a rally on October the 10th. We have a local trend line up. The pair met resistance in the vicinity of 137.469. Monday opened with a slight gap down. The price retraced but bounced with a bullish pinbar from support, that coincides with the local trend line up.
Wait for the price to resume movement up, by breaking above resistance at 137.469. Further targets up may be found in the areas of resistance, first at the 61.8% Fibo 138.878, then 139.743 and further up we have resistance at 141.507.
If Brexit negotiations or the US-Sino trade talks fail, and risk aversion turns investors to safe haven Yen, the pair will trade lower, with targets down at the 38.2% Fibo 134.167 and then 23.6% Fibo at 131.252.
Fundamentally, tomorrow we will have the release of Japanese Industrial Production at 7:30am GMT+3 and UK Employment at 11:30. On Wednesday UK CPI at 11:30am GMT +3. Same time on Thursday, 11:30 am we have UK Retail Sales and on Friday Japan CPI at 2:30am GMT+3.