Forex Marketz Daily Forex News – Fully Markets Update
The GBP/JPY Forex market continues to trade very quietly drifting sideways. The Sterling has been stuck below a barrier capping gains since around mid-June.
Technical Analysis
Let’s look at today’s GBP/JPY technical analysis. There is trend line resistance, also near-term resistance lining up at 193.45. A daily close above the trend line will see a challenge of the technical resistance lining up at 194.57. The alternative technical analysis, should the Sterling push lower, thus pushing the GBP/JPY Forex market down, notes support lining up at 193.20. A break below this technical support will challenge the support lining up at 192.38.
Trade Strategy
Let’s now look at today’s GBP/JPY trade strategy. There is not a lot of event risk on today’s economic calendar. Japan just released its PMI Services index which came out at 51.8. This was just above expectations. The United Kingdom will also release its PMI services index later today. This should not shake the market up as they are not key data. They are important, but in the grand scope of things not critical. With the lack of event risk, I will rely on my charts to make a trade decision. Price action in this Forex market is not very conclusive. The trading pattern is wedged between a technical support and a technical resistance level. From a risk to reward perspective, a long or short GBP trade is not warranted right now. Simply put, there is no trade opportunity to match my trading style. Keeping that in mind, I will opt to stand aside and monitor my trading charts for a more opportune trading opportunity to come along. For now I am flat in the GBP/JPY Forex market.