Fundamental Analysis: My currently view the Great British Pound as having a neutral fundamental bias primarily due to the conflicting influence of Brexit concerns and rate hike expectations. Brexit concerns will continue to weigh on GBP given the risks which surround the UK economy if the UK EU negotiations result in a hard Brexit. At the same time, inflation in the UK has continued to increase with CPI y/y now above the BoE's 2% target along with BoE's Forbes having voted to hike rates at the BoE's March meeting and most MPC members agreeing that a rate hike may be needed sooner than initially expected. For the Yen in my opinion si fundamentally bearish currency as inflation in Japan continues to remain far below the BoJ's target with no sign of improvement. This will eventually leave the BoJ with no other alternative but to further ease monetary policy.I think that the price is cheap in this zone, a nice opportunity to buy. Technical Analysis: There is a nice deep bull harmonic Gartley pattern, an its PRZ in 136.881- 134.675.
Comments
HamzaSaleem
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mate in my view it will go short as it has break the support what u think leme show u
JuanHernandez
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@HamzaSaleem, It did not break the support because the long term fundamentals, GBP is neutral bias and JPY is bearish bias. In conclusion GBPJPY is in a bullish fundamental bias, so a bad news would not affect to much GBPJPY, but a good news would l be strong bullish signal. That is why I bought GBPJPY in that zone because it was more likely that the price would bounce in the support, than brake it. Have a great day :)