In the present day I’m GBP/JPY for a development continuation alternative.
Can the pound lengthen its uptrend towards the yen?
Earlier than transferring on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Test them out earlier than you place your first trades at the moment!
And now for the headlines that rocked the markets within the final trading sessions:
Contemporary Market Headlines & Financial Knowledge:
Rightmove: Costs for UK homes hit file highs in all nations and areas of Britain
Gov Bailey: BOE “will have to act” against inflation
New Zealand dollar higher as inflation surprises, yields jump
China’s GDP growth hits 1-year low as power crunch, bottlenecks choke output
Dollar stands tall vs rivals on firmer yields
European shares dip on inflation worries, weak China data
Upcoming Potential Catalysts on the Economic Calendar:
Canada’s housing begins at 9:00 am GMT
U.S. industrial manufacturing at 1:15 pm GMT
BOC’s enterprise outlook survey at 2:30 pm GMT
If you happen to’re not accustomed to the foreign exchange market’s major buying and selling periods, take a look at our Forex Market Hours instrument.
What to Watch: GBP/JPY
I don’t see any top-tier financial information scheduled for launch however that shouldn’t cease merchants who’ve been pricing in different market themes at the moment.
Financial institution of England (BOE) officers have been strongly hinting that they’ll quickly have to boost charges to fight stronger-than-expected inflation.
On the opposite facet of the pair, the mix of USD/JPY’s power, larger power costs (Japan is an power importer), and a little bit of threat urge for food have weighed on the safe-haven yen.
I’m GBP/JPY, which has been on a sharp-ish uptrend for the reason that first week of October. See, the pair is buying and selling in a attainable flag pattern that might result in an extension of the 1-hour uptrend.
If merchants proceed to take dangers or push USD/JPY and different yen crosses larger, then GBP/JPY might break above its bullish flag candlestick pattern and lengthen its uptrend all the way in which to 160.00 or 162.00.
But when pound bears push for a deeper pullback, or if threat aversion from China’s disappointing financial launch units in, then GBP/JPY might dip to earlier areas of curiosity nearer to the 100 SMA.
