Forex Marketz Daily Forex News – Fully Markets Update
Headed into the American Thanksgiving day holiday, which is Thursday, Forex traders are hesitant to take large positions as volume will be low for the day. The British pound (GBP) on the above hourly GBP/JPY MT 4 price chart is challenging the three day old support level at 139.60 yen.
The British pound recently reversed lower against the safe haven Japanese yen (JPY) at 139.83 yen after the MACD histogram started to signal a bearish price trend signal and the relative strength index (RSI) moved into overbought territory.
The economic calendar today is quite busy out of the United States. The Federal Reserve Board will release their monthly Federal Open Market Committee (FOMC) minuets from their last monetary policy and rate decision.
The University of Michigan is releasing their monthly revised consumer sentiment gauge and because of the holiday on Thursday, the Labor Department is scheduled to release weekly labor data. This includes first time jobless claims and continuing claims data.
The United Kingdom, Japan and the European Union have no key economic data releases scheduled. Neither does Canada.
Daily British Pound Technical Analysis (GBP/JPY)
Looking at price action on that above GBP/JPY price chart, the British pound is looking to challenge a downside congestion zone near the one hundred (100) hour simple moving average.
This area comes into play at 138.45 to 138.40 yen. This will happen if there is a daily close below the rising trend line in play at 139.55 yen.
On the downside there is also the 16 November high price point at 138.90 yen and then the monthly low price point lining up at 137.20 yen.
On the upside, a daily close above 139.80 yen will open the door to challenge the falling trend line in play from 1 September. This upside barrier lines up at 139.85 yen before challenging the round 140 yen barrier.
A daily close above 140 yen opens the door to challenge 140.30 yen then the early September low price point at 140.50 yen. The next layer of technical resistance lines up at 142.70 yen.
