14/10/22 Daily Forex Strength Weakness Video

Fri 14th October 2022

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

• GBPJPY
• EURJPY

• GBPAUD
• EURAUD

Charts Provided by Charles Clifton

Daily Analysis By Jon Kibbler

JPY Weakness Returns

In today’s video update we focus on the returning JPY weakness as well as strength in the GBP and EUR. The risk in the market has faded despite recent volatility around the US CPI figures. There has been talk of the BoJ intervening after the recent US Inflation data but the Japanese central bank is refraining from commenting. Notably the risk sentiment in the market has changed, the stock markets rallied which can often see the JPY weaken.

The GBP seems to have made a recovery after the UK Government reversed it’s mini budget decision to cut taxes. This however may be followed by an increase in corporation tax according to NewsSquawk analysis. The EUR also strengthened this week as some ECB members are expecting a 75bps hike in the next meeting. 

Technical Observations

• The GBP is S1 on both forex strength and weakness tables and the JPY is W1 on the day traders table.
• Price is currently trading above the 200 moving average.
• Minor resistance of 166.00 was broken but could act as support.
• If the price finds support here the next level of resistance is 168.00.
• A break above 168.00 would provide a strong opportunity for price to seek higher levels.