Another 200+ Pip Move To Come On GBPJPY
Thurs 25th May 2023 : Daily Currency Strength Analysis
Today we’re looking at Trading Setups in:
- GBPJPY (Primary Focus Pair)
- USDJPY (Covered In Video)
- GBPAUD (Covered In Video)
Primary Focus Pair: Overview
GBPJPY
GBP is highlighted as a strong currency on both of our live forex strength vs weakness tables.
Opposite to GBP is JPY which remains weak despite the potential for a change in the risk sentiment this week.
US Debt Ceiling negotiations could have caused a shift in risk tone this week, but the market is pricing in a solution to the negotiations keeping JPY weak.
GBPJPY has been consolidating above key resistance of 171.50.
A breakout higher could influence a move up to key resistance of 174.50.
If we are looking to get long on this forex pair we have two options.
The first option would be to wait for price to trade through the highs at 172.75 before looking for a pullback entry.
A second option could be to wait for price to come back to the lows of the range at 171.50 for a range low entry.
Either option could work in this type of situation, however if momentum is with this market, we would expect a break and retest entry will be more likely.
Technical Observations:
- GBP is S3 and JPY is W3 on the day traders table.
- Price is trading above the key resistance level at 171.50.
- H4 chart shows price consolidation above this level.
- If price breaks through the highs it could offer us a retest entry.
- Alternatively, if price comes back to the range lows at 171.50 traders could buy from here.
- Buyers could target 174.50 on long opportunities.
Todays 9am (BST) Forex Strength Vs Weakness Tables:
