Saturday, June 3, 2023

Will GBP/JPY Turn Down Again?


traded sharply higher on Thursday, after hitting support near the 151.60 zone. Overall though, the pair continues to trade below the downside resistance line drawn from the high of June 24, as well as well below a longer-term one taken from the high of May 27. With all that in mind, we would see decent chances for the bears to jump back into the action soon and push the pair down.

The bears may decide to take charge from near the downside line drawn from the high of June 24. If so, we could see another test near 151.60 soon, the break of which could target the low of June 21, at around 151.33. If the bears are not willing to stop there either, then a break lower could set the stage for extensions towards the low of July 8, at 150.65.

Looking at our short-term oscillators, we see that the RSI, although below 50, turned up again and is now near that equilibrium line, while the MACD lies below both its zero and trigger lines, but turned somewhat up as well. Both indicators detect downside momentum, but the fact that they have turned up suggests that some further recovery may be in the works, perhaps for the rate to test the aforementioned short-term downside line.

Now in order to start examining whether the bulls have gained full control of this pair, we would like to see a recovery, not only above the line drawn from the high of June 24, but also above the other, longer-term one, taken from the high of May 27. This may be confirmed upon a break above the 154.54 zone, marked by the high of June 25. The bulls may then get encouraged to climb towards the 155.17 barrier, marked by the highs of June 23 and 24, or the 155.50 zone, marked by the high of June 15. If neither zone is able to stop the advance, then we could see extensions towards the 155.90 or 156.07 levels, defined as resistances by the highs of June 1 and May 28 respectively.

Disclaimer: The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval. 75.05% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure – .

Source link


Please enter your comment!
Please enter your name here



Related Stories