Current trend
At the beginning of the trading week, the GBP/JPY pair has been correcting amid expectations of important macroeconomic releases.
Data on adjusted merchandise trade balance is due in Japan on Wednesday. Analysts predict the indicator will grow from 242.8 billion to 834.6 billion. Thus, Japan is expected to post a trade surplus of almost 600 billion that will have a positive impact on the economy and the national currency. Moreover, attention needs to be paid to data on unemployment in the UK. An expected decline in the Claimant Count Change will support the country’s economy and strengthen the Pound. If the indicator remains unchanged or grows, the Pound is likely to come under pressure, and the GBP/JPY pair can substantially weaken.
Support and resistance
On the daily chart, the pair is trading between the middle and the lower MAs of Bollinger Bands. MACD histogram is in the negative zone and is giving a weak buy signal. Stochastic is falling in the middle of its range.
In general, the indicators are giving a weak sell signal.
Support levels: 151.81, 149.92, 147.93, 145.08.
Resistance levels: 153.45, 155.74, 157.21, 159.34, 162.29, 163.60, 165.40.
Trading tips
Long positions can be opened from the level of 157.21 with targets at 162.29, 163.60 and stop-loss at 153.45. Validity – 3-5 days.
Short positions can be opened from the level of 151.81 with targets at 147.93, 145.08 and stop-loss at 157.21. Validity – 2-4 days.
At the beginning of the trading week, the GBP/JPY pair has been correcting amid expectations of important macroeconomic releases.
Data on adjusted merchandise trade balance is due in Japan on Wednesday. Analysts predict the indicator will grow from 242.8 billion to 834.6 billion. Thus, Japan is expected to post a trade surplus of almost 600 billion that will have a positive impact on the economy and the national currency. Moreover, attention needs to be paid to data on unemployment in the UK. An expected decline in the Claimant Count Change will support the country’s economy and strengthen the Pound. If the indicator remains unchanged or grows, the Pound is likely to come under pressure, and the GBP/JPY pair can substantially weaken.
Support and resistance
On the daily chart, the pair is trading between the middle and the lower MAs of Bollinger Bands. MACD histogram is in the negative zone and is giving a weak buy signal. Stochastic is falling in the middle of its range.
In general, the indicators are giving a weak sell signal.
Support levels: 151.81, 149.92, 147.93, 145.08.
Resistance levels: 153.45, 155.74, 157.21, 159.34, 162.29, 163.60, 165.40.
Trading tips
Long positions can be opened from the level of 157.21 with targets at 162.29, 163.60 and stop-loss at 153.45. Validity – 3-5 days.
Short positions can be opened from the level of 151.81 with targets at 147.93, 145.08 and stop-loss at 157.21. Validity – 2-4 days.