GBPJPY Rolls Over
The recent GBPJPY head and shoulders trade has seen price breaking down to hit the target at 149.39. Both MACD and RSI are bearish here suggesting there is room for further downside. However, the current level is a major support zone for GBPJPY and price action is holding up for now, suggesting the need for patience. Bears can look to re-set shorts on a break of current lows, targeting the 147.39 level next.
GBP remains soft here amidst the ongoing rise in COVID cases, which seems likely to worsen as the weather changes over coming months. JPY meanwhile, continues to derive firm safe-haven support, suggesting there is more to go in this move.
Key Data to Watch
Little in the way of any tier-one data for this pair. However, given the themes at play here (GBP lower on COVID news, JPY higher) the main focus will be on the broader pandemic backdrop. With cases, hospitalisations and deaths likely to continue rising in the UK, GBP sentiment looks dim in the near term, which should keep the pair weighted to the downside. Away from this, the focus will be on the comments made and themes discussed at Jackson Hole this week with any rise in USD likely to hurt GBP more, once again.
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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.