GBPJPY is breaking out of two downward price channels and therefore signals buying coming into the market. Please follow our YouTube channel for more Price Action Analysis videos and more detailed technical analysis on this and many other markets. The risk-off sentiment seems to be easing at the moment, which means stocks gaining ground and the safe-haven JPY losing its attractiveness. This helps GBPJPY but the risk for long trades in the pair comes from the UK – EU Brexit negotiations and potentially damaging coronavirus restrictions in the UK. Therefore, we advise against trading without stops or with too high leverage. By reading further you agree with our disclaimer at the bottom of this page and acknowledge that we do not provide investment advice.

GBPJPY shows signs of reversal. The pair has broken out of the regression channel (the first green arrow) as well as the second downward-pointing channel with a less steep angle (the second green arrow). A further sign of strength was given by the pair finding support from the top of the second channel (blue arrow). These technical factors point to a change taking place in terms of supply and demand balance. To take advantage of our analysis and ultra-low trading fees, register for an account and deposit here
There is more demand coming to this market which has started to tilt the direction of the trend and has increased the probability of this pair reversing the downtrend. We are looking for buy signals above 133.00. To see a more detailed analysis with the key levels and targets, visit our YouTube channel. A Price Action Analysis on this pair will be published there shortly. 

The news headlines today

  • The data on industrial firms in China showed growth continued for the fourth straight month in August.
  • Nancy Pelosi, the US House Speaker said she believes the second coronavirus stimulus package is possible.
  • Coronavirus vaccine candidate by Johnson and Johnson has been reported to show acceptable safety profile.
  • UK government is planning to lock-down most of northern Britain.
  • US special envoy to Northern Ireland has expressed his belief that the UK and EU can still reach a trade deal.
  • Oil is believed to have limited upside due to decreasing rate of increase in global demand growth. However, at the same time, the strike in Norway is threatening to cut production by 900K barrels per day.

GBPJPY shows signs of reversal. The pair has broken out of the regression channel (the first green arrow) as well as the second downward-pointing channel with a less steep angle (the second green arrow). A further sign of strength was given by the pair finding support from the top of the second channel (blue arrow). These technical factors point to a change taking place in terms of supply and demand balance. To take advantage of our analysis and ultra-low trading fees, register for an account and deposit here
There is more demand coming to this market which has started to tilt the direction of the trend and has increased the probability of this pair reversing the downtrend. We are looking for buy signals above 133.00. To see a more detailed analysis with the key levels and targets, visit our YouTube channel. A Price Action Analysis on this pair will be published there shortly. 

For more analysis and commentary, visit our YouTube channel where you can find daily market commentary videos to support your learning and growth as a trader.

Recent macroeconomic data releases

  • US Crude Oil Inventories, -1.6M, -2.5M expected
  • SNB Policy Rate, -0.75%, -0.75% expected
  • US Unemployment Claims, 870K, 845K expected
  • UK Public Sector Net Borrowing, 35.2B, 40.6B expected
  • US Core Durable Goods Orders, 0.4%, 1.0% expected
  • US Durable Goods Orders, o.4%, 1.1% expected

Macroeconomic data releases today & tomorrow

  • ECB President Lagarde Speaks
  • US CB Consumer Confidence, 90.0 expected

You may access the times and dates in the economic calendar here.

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Trade Safe!

Janne Muta
Chief Market Analyst
TIOmarkets.com

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Janne Muta
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