Forex Marketz Daily Forex News – Fully Markets Update
The GBP/JPY Forex market is trying to move lower. Yesterday the Sterling averted this bearish reversal, but the negative RSI divergence continues to hint of continued weakness in this market.
Technical Analysis
Today’s technical analysis sees the GBP/JPY now trading just below the trend line support at 191.40. A daily close below this level is bearish for a challenge of the technical support at 189.44/45. The alternative analysis, should this market defend at the trend line support and push higher has technical resistance lining up at 192.28. A break above this technical level will challenge the technical resistance at 194.60/59.
Trade Strategy
Today’s strategy is straight forward from a technical perspective and with little event risk on the horizon right now that is my focus. Entering a short GBP trade this close to a technical support, is ill advised from a risk to reward perspective. Timing is not right at this time. There are no key bullish reversal signs. This argues against taking any long GBP (or short JPY) trade at this time. For now, I am opting to stand aside and monitor my charts for a better trade to come along.