Forex Marketz Daily Forex News – Fully Markets Update
Three points to consider in this Forex Market:
- The Sterling has set a new higher low and a higher high. This could mean a GBP/JPY recovery.
- Resistance level is now a support level.
- Trade strategy: Stand aside
The GBP/JPY Forex market has formed a new higher low near where I would have entered a short Sterling trade. The new higher low indicates a possible up move in this Forex market. As of Thursday, last week, the Sterling set a new high price point, intermediate, at 188.26.
Technical Analysis
On Friday, the GBP/JPY Forex market spent most of the trading day in the re as money poured into the yen after the FOMC announcement. Let’s look at today’s technical analysis for this market. It would appear the GBP/JPY is forming a new higher low around the technical support at 186.28. I was looking to set a short trade at this key support level and it is now invalid. A daily close below this key support would have challenged the June panic low around 180.342. The alternative GBP/JPY technical analysis, should the Sterling recover, thus supporting this Forex market, notes technical resistance lining up at 187.49/50. A break above this technical level will challenge the technical resistance levels towards 189.92.
Trade Strategy
Let’s now discuss today’s GBP/JPY trade strategy. Any breaks back below 185.49 could be attractive for a short position as a break below this level challenges a key pivot at 185.00 then 184.00. For now, I will opt to stand aside as risk to reward considerations argue against taking a long or short GBP trade at this time. For today, I am flat in the GBP/JPY Forex market.
