GBP/JPY: Pound gains back losses

September 11, 2015

Current trend

Yesterday, the British currency continues strengthening against the Japanese Yen amid a series of interesting macroeconomic releases both from Japan and the UK.

The Yen was under pressure from weak Machinery Orders statistics (+2.8% in July vs. +10.5% forecast) and Domestic Corporate Goods Price Index, which came in 0.3% below expectations at 3.6%.

On the other hand, the British currency was supported by the results of the Bank of England meeting. As it had been expected, the Regulator decided to keep its approach to monetary policy unchanged and, at the same time, did not revise quite optimistic forecasts of economic growth and timing of a rate increase (the first quarter of 2016).

Support and resistance

Bollinger Bands on the daily chart is turning horizontally. At present, the indicator is not giving any clear trading signals.

MACD is growing and keeping a strong buy signal. It is recommended to keep existing and open new long positions in the short run.

Stochastic is turning horizontally, indicating a possibility of a downward correction in the short run.

Support levels: 186.26, 185.00, 183.23 (24 August low), 182.46, 182.00, 181.37, 180.39 (7 September current low).

Resistance levels: 187.32, 188.56, 189.95 (25 August local high), 190.97, 191.94, 193.01, 194.54, 195.23 (18 August high).

Trading tips

Long positions can be opened after the breakout of the level of 187.32 (with appropriate indicators signals) with targets at 188.70, 189.00 and stop-loss at 186.26, 186.00.

Short positions can be opened after the breakdown of the level of 185.00 with the target at 183.00 and stop-loss at 186.00.

Publication source
LiteForex information  LiteForex reviews

February 17, 2017
Golds rally may falter
The gold price has racked up its 2nd straight day of gains today on the back of US dollar weakness and doubts over an interest rate hike next month from the US Federal Reserve...
February 16, 2017
Where is black gold heading?
The Euro is slowly going down and this is not brought on by the Eurozone situation. Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech in the Senate Banking Committee emphasising the fact that it Is not quite right to use the wait-and-see stance regarding the interest rate hike...
February 14, 2017
Will France exit the euro?
The Euro has come under pressure late in the European session today, after analysts warned of the huge costs that France would face should they decide to ditch the European currency...

OANDA Rating
FOREX.com Rating
FIBO Group Rating
Tickmill Rating
XM Rating
Fort Financial Services Rating

Migesco Rating
OptionRally Rating
Anyoption Rating
Banc De Binary Rating
365BinaryOption Rating
UKoptions Rating