GBPJPY may enter into a bearish phase
GBPJPY may enter into a bearish phase
The data indicates a weakening outlook for GBP as traders shift towards a bearish sentiment, supported by weaker economic indicators and a lack of strong momentum in exogenous factors like GDP and interest rate differentials. Conversely, JPY is showing strength, driven by its safe-haven appeal and positive speculative positioning, as reflected in the COT data. While seasonal trends suggest potential GBP bullishness in early December, the overall bias favors JPY strength, leading to a bearish outlook for the GBP/JPY pair in the near term. Key focus areas for traders should include monitoring UK economic releases (GDP, CPI) and BOJ policy signals, with a preference for shorting GBP/JPY unless there’s a significant shift in GBP fundamentals.
The data indicates a weakening outlook for GBP as traders shift towards a bearish sentiment, supported by weaker economic indicators and a lack of strong momentum in exogenous factors like GDP and interest rate differentials. Conversely, JPY is showing strength, driven by its safe-haven appeal and positive speculative positioning, as reflected in the COT data. While seasonal trends suggest potential GBP bullishness in early December, the overall bias favors JPY strength, leading to a bearish outlook for the GBP/JPY pair in the near term. Key focus areas for traders should include monitoring UK economic releases (GDP, CPI) and BOJ policy signals, with a preference for shorting GBP/JPY unless there’s a significant shift in GBP fundamentals.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.