GBPJPY towed down as risk aversion soars.
“Fears of economic slowdown in UK push waves of risk-aversion in the market.”
GBP/JPY oscillates near intraday low of 163.00 as investors shies away due to rising political and economic risk. The Telegraph reported that Conservative Party may reattempt to oust UK Prime Minister by overhauling laws to trigger leadership challenge immediately. On the other hand, latest survey shows that 54% of 5,700 companies in UK expects increased business turnover for the next 12 months. The result is considerably lower when compared to past survey of 63%. With various risk come into play, pound sterling will less likely be able to defend its bullishness due to poor economic outlook in the forefront.
Quick recap of GBPJPY
The pair experienced substantial losses as it failed to overcome previous hurdle near 168.00.
GBPJPY Weekly Technical Analysis
From weekly perspective, the pair is skewed towards the downside for short-term as MACD produces bearish divergence signal.
GBPJPY Daily Technical Analysis
Nonetheless, the pair requires a close below strong support of 162.11 to attain confirmation.
Trading Idea
ORDER: SELL STOP
ENTRY: 161.40
STOP LOSS: 164.40
Target 1: 158.15
Target 2: 153.00
ZFX Analyst’s Comment
While the pair shows significant bearish bias from weekly perspective, it is advisable to wait for a close below the strong support near 162.11 before entering the market.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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