US Markets Offline: JPY Still Weak
Mon 3rd July 2023 : Daily Currency Strength Analysis
Today we’re looking at Trading Setups in:
- GBPJPY (Primary Focus Pair)
- USDJPY (Covered In Video)
- NZDJPY (Covered In Video)
Primary Focus Pair: Trade Plan & Details
| GBPJPY | Price | Pips +/- | R/R (Max/Min) |
|---|---|---|---|
| Entry Price | 183.05 | ||
| Stop Loss (Min) | |||
| Stop Loss (Max) | 181.45 | -160 pips | |
| Profit 1 | |||
| Profit 2 | 187.90 | +485 pips | 1 : 3.03 |
Details:
The US markets will be offline for a couple of days (July 4th / Independence day) meaning trading volumes will be low whilst volatility is likely to be heightened heading into this week of trading.
Despite this, GBP briefly appeared on the tables this morning as a strong currency being S1 on the trend traders tables and S3 on the day traders tables. It shortly fell away from the tables after the UK Manufacturing PMI data showed a decline.
However, JPY remains our weakest currency topping both tables.
So could GBPJPY trade higher, if GBP returned back as a strong currency?
Price of GBPJPY has been on fire lately, very similar to other JPY paired currencies, but GBPJPY has rallied over 1500+ pips since May formed a lows at 167.60.
If this momentum were to continue we could see price test the November 2015 highs at 188.00.
Looking at our hourly trading timeframe we can see price is forming support at 183.00, this level could offer an opportunity to go long.
This level holds confluence with a 50 moving average and a previous structure lows.
Technical Observations:
- GBP is S3 and JPY is S2 on our day traders tables.
- Price is bullish making higher highs and higher lows.
- Price could trade to the next level of resistance at 188.00.
- The hourly chart shows price finding support at 183.00 with confluence of a 50 moving average.
Todays 9am (BST) Forex Strength Vs Weakness Tables:
