JPY Weakness Appears : GBPJPY One To Watch
Mon 21st August 2023 : Daily Forex Price Action
Today we’re looking at Trading Setups in:
- GBPJPY (Primary Focus Pair)
- USDJPY (Covered In Video)
- NZDUSD (Covered In Video)
Our Interest (pending order)/Open Interest (live position)
Risk warning: Trading carries a high degree of risk. Read more here.
Our live forex strength and weakness tables have seen some currencies remain in the same roles as at the end of last week, but we have had changes too.
One significant change this morning was to the JPY.
On our 9am tables we can see JPY is on the strong side of the Day Traders table.
By the time we came to discuss today’s currency pairs to watch, JPY had flipped to the weak side, and appeared as W3.
This tells us that the market has turned Risk-on, meaning that money is flowing out of the Yen and into it’s counterpart currencies.
GBP is still S2 & S1 on our tables giving us the idea to focus on GBPJPY upside.
GBPJPY has been trending upward on the weekly chart since testing and rejecting key support at 180.50.
To the upside, the next level of GBPJPY resistance is 188.00, offering us opportunities to trade long to this point.
Our H1 chart shows price breaking back above the 50 moving average and above prior minor highs at 185.50.
If price were to retrace to and retest the 185.50 handle we could look for buyers to step back in.
We will look to place a buy stop order if price retraces to and retests the 185.50 level before breaking back above the Hourly 50MA.
