US Session yesterday provided a reason for the bears sell off GBPJPY. Price almost hit Thursday’s low but eventually climbed back up towards the close.
Before the US Session we saw the inherent weakness of JPY as supported by the BOJ’s usual monetary policy and the strength of GBP from the positive GDP data that came out of UK. All of these was invalidated when NFP came out. The sell off was kind of systemic in nature as the US comes with an overall bigger impact.
Based on Friday’s movement we will draw our biases:
Bullish bias:
1. GBPJPY is bullish because it created a new high in the dailies and has so far broken the lower high lower low trend.
2. GBPJPY will continue to be bullish if it creates a new high by breaking past 164.15 (ideally beyond 164.30) with a bullish close.
Bearish bias:
1. GBPJPY has inherent weakness because Friday’s close was at the low side.
2. GBPJPY will continue to be bearish if it creates a new low and closes low.
As of now, we can conclude that GBPJPY will mostly be range bound not unless some significant data will change its course.
Before the US Session we saw the inherent weakness of JPY as supported by the BOJ’s usual monetary policy and the strength of GBP from the positive GDP data that came out of UK. All of these was invalidated when NFP came out. The sell off was kind of systemic in nature as the US comes with an overall bigger impact.
Based on Friday’s movement we will draw our biases:
Bullish bias:
1. GBPJPY is bullish because it created a new high in the dailies and has so far broken the lower high lower low trend.
2. GBPJPY will continue to be bullish if it creates a new high by breaking past 164.15 (ideally beyond 164.30) with a bullish close.
Bearish bias:
1. GBPJPY has inherent weakness because Friday’s close was at the low side.
2. GBPJPY will continue to be bearish if it creates a new low and closes low.
As of now, we can conclude that GBPJPY will mostly be range bound not unless some significant data will change its course.