GBPJPY Breakout Complete
The rally in GBPJPY has seen the pair hitting the final target for the breakout trade from 157.88 at 162.59. The rebound in risk assets over recent weeks has fuelled a high level of outflow from JPY. Meanwhile, hawkish BOE expectations continue to keep the Pound supported against JPY. The retail market continues to hold a large short position in the pair, suggesting scope for further upside near term while 159.98 holds as support. For those looking to stay long, this is the key pivot to watch. Worth noting some bearish divergence in momentum studies on the last push higher.
Keep An Eye On
Looking ahead this week, PMI data sets later in the week will be the main data focus with both the UK and Japan due to report. The bigger focus, however, should remain on broader risk flows. While the current dynamic of better risk appetite continues to play out, GBPJPY is likely to remain supported. Any reversal in risk flows, however, will weigh on the pair near term.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.