The pair of the pound with the Japanese yen (GBP/JPY) since the beginning of March moved in a strong uptrend (+1700p) interrupted by one downward correction that occurred in May this year. The main ” guilty ” of such strong growths was the Japanese yen, strongly losing to other currencies. Last week, after establishing the maximum of this year at the level of 168.70, the pair began another downward correction.
Analyzing the weekly chart we notice that a double top has appeared. A downward divergence is forming on the MACD.
On the daily chart, Thursday’s daily candle formed a bearish engulfing pattern and already the next day on Friday the price broke out of this pattern. On the MACD the downward divergence initiated by Friday’s breakout continues. All assumptions of the PA+MACD strategy have been met.
The technical situation indicates further declines. The supply can bring the price to the support and resistance level located at 158.00.
This week we have three central bank decisions: FED on Wednesday, BoE on Thursday and BoJ on Friday. We will know the interest rates and the details of monetary policy of these banks. This will have a big impact on the forex market. If you plan to open an order on GBPJPY you should expect high volatility during the publication of these data.
I will discuss more details on this pair and several other financial instruments during Wednesday 15th of July live sessions.
LIVE TRADING SESSIONS- FREE ENTRY
I invite you to my – Wednesday’s, 15th of June at 09:00-10:00 GMT +1 (London time) live trading session here: https://www.xm.com/live-player/basic
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
More current analysis on the group : Trade with Dargo
In our Facebook group, which you can join anytime: https://www.facebook.com/groups/328412937935363/ you will find 5 simple strategies on which my trading is based. There, every day we post fresh analyses of currency pairs and commodities. You can also visit my channel where I post my trading ideas: https://t.me/TradewithDargo
Leave us a comment!