24/10/22 Daily Forex Video: GBPJPY Recovers Fridays Huge Losses

Mon 24th October 2022

Today, Our Daily Forex Strength Weakness Video will focus on:

• GBPJPY
• EURJPY

Charts Provided by Charles Clifton

Daily Analysis By Jon Kibbler

GBPJPY Recovers Fridays Losses?

In today’s video update we focus on two forex pairs. The GBPJPY and EURJPY. These pairs will be our focus today as the live forex strength and weakness tables show us that the GBP (S1), EUR (S2), JPY (W1), CHF (W3).

The currency pair to watch is GBPJPY as it recovers the losses formed on Friday. Late into the end of the session last week we saw the Japanese Yen strengthen significantly however, the Bank of Japan is refusing to comment on whether it was them that intervened.

Despite this we can safely assume it was them and the last time they did it the price did recover. This is what we are seeing here with currency pair currently, the price has retested the levels before the intervention. 

In the UK the Conservative party are looking for a new leader who will become the new Prime Minister. Currently Rishi Sunak is leading the polls after former Prime Minister Boris Johnson announced he will not be running.

The GBP reacted positively to this news and we could see the GBP strengthen further as outlined by the forex strength / weakness tables.

The price traded back below the key 168.00 level after the intervention. However, the price turned at the daily candle lows of 165.00. If the price trades higher back above the recently formed highs around 170.00 we could see buyers enter the market.

Technical Observations

• The GBP is S1 on both tables and the JPY is W1.
• Price is currently trading above the key level of 168.00 but below the previous highs of 170.00.
• BoJ intervention was short lived as price is back to pre intervention levels.
• Next key resistance is 175.00..
• A break above the candle highs at 170.00 could offer breakout trading opportunities.