Forex Marketz Daily Forex News – Fully Markets Update
Looking at the British pound (GBP) on the above daily GBP/JPY MT 4 price action chart, the bears have entered the market and price action moving towards 136.25 yen during the morning Asian trade session.
The British pound is extending yesterday’s losses as the GBP/JPY currency exchange rate broke below a short term rising trend line as well as below the simple moving average (SMA) juncture.
Heading into the Asian trade session, later today, Japan will release their monthly tertiary activity. Forex traders should note that Japanese economic data does not mean much. The Bank of Japan is not likely to change their monetary policy settings anytime soon.
This means that geopolitical headlines will affect the yen (JPY) more. Taiwan is receiving advanced weaponry from the United States and China has vowed to respond.
The United Kingdom and the European Union have failed to close the gap on the free trade agreement (FTA) ahead of the 15 October deadline. This will affect the British pound over the course of the day and possibly support safe have Forex units like the yen.
The Eurozone will release their monthly industrial production data. The United States will publish monthly headline and core factory gate price data. This is also called the producer price index (PPI). Bank of England and Monetary Policy Member Andrew G Haldane will speak. He is also the central bank’s chief economist.
Daily British Pound Technical Analysis (GBP/JPY)
Looking at price action, the relative strength index (RSI) is fairly neutral which means the British pound could see further losses against the safe haven yen. The downside barrier lining up at 135.95 could be on the radar at this point. The next downside barrier lines up at 135.05 yen with the 14 July low price point at 134 yen then coming into focus.
On the upside, there is a congestion zone at 136.50 to 136.55 as the first upside hurdle. This is where the one hundred and two hundred (100, 200) day simple moving averages (SMA) line up. The next upside congestion zone lines up at 137.25 to 137.30 yen.
The fifty day (50) simple moving average lines up at 137.75 yen with the late August monthly low price point at 138.25 then coming into focus.
