Forex Marketz Daily Forex News – Fully Markets Update
GBP/JPY (185.409)
- The Sterling is trading quietly after hitting a four month low.
- Near term support could break ending a multiyear bullish run
- Trade Strategy: Flat
The GBP/JPY Forex market is treading water. The Sterling is trading quietly after price action saw the Sterling hit a four month low. Please refer to the below GBP/JPY daily MT 4 chart for today’s daily technical analysis.
Technical Analysis
Let’s look at today’s daily GBP/JPY technical analysis. There is near term support at the end of a cluster area that starts at the July 8 low. This area runs from 184.41 to 184.97. A break below this technical support challenges the next technical support at 181.85. The alternative GBP/JPY technical analysis, should the Sterling gain momentum, notes technical resistance lining up at 186.99. A break above this technical resistance level notes technical resistance lining up at 188.55.
Trade Strategy
Let’s look at today’s GBP/JPY trade strategy. There is a critical current support lining up a long term trend line. This is not visible on the above MT chart. This has been guiding price action in this Forex market higher since June 2012. As the month of September starts, a break below near term support could put this rising trend line at risk, thus putting this long term up move in jeopardy bringing about a sustain bearish move.
Let’s look at things from a technical analysis perspective. There is no actionable GBP/JPY trade opportunity right now. There is no long or short Sterling trade as I will opt to stand aside and monitor my charts for confirmation of a larger trend reversal in this Forex market. Today, I am flat with the GBP/JPY Forex market.
