GBPJPY long DXY long
Last week was a big week for GBP with interest rate freezing at 4.75%, although 3 members voted to reduce the rate instead of the forecast 1, core inflation has slowed up but still remains too high for now. The labour market proved to be balanced.
UK's major issue still lingering is the governments autumn budget which has a lot of data to collect before we see the measure of their changes.
Japan is showing high interest rates relative to the norm, but also boasts high economic growth with the annoyance of high labour costs.
The move last week after the interest rate announcement will be completely retraced before the next move up.
Another factor is the DXY which relative to the JPY moves inversely.
DXY since the US election has been bullish and I can see it continuing, last week we saw a correction due to PCE data and now we have a free rein.
GBPJPY long with targets of 199, 201, 204 support right now is 196.6, a move direct from here would be extremely bullish and a quick move back to 198-199. If we move lower than 196 invalidates my thesis.
Idea is based around DOL at 199, trend continuation with fib 1.618 and FVG at 201. Support was prior news resistance level.
This is not financial advice for anyone, its solely my take on predicting the next move for GBPJPY.
happy holidays
UK's major issue still lingering is the governments autumn budget which has a lot of data to collect before we see the measure of their changes.
Japan is showing high interest rates relative to the norm, but also boasts high economic growth with the annoyance of high labour costs.
The move last week after the interest rate announcement will be completely retraced before the next move up.
Another factor is the DXY which relative to the JPY moves inversely.
DXY since the US election has been bullish and I can see it continuing, last week we saw a correction due to PCE data and now we have a free rein.
GBPJPY long with targets of 199, 201, 204 support right now is 196.6, a move direct from here would be extremely bullish and a quick move back to 198-199. If we move lower than 196 invalidates my thesis.
Idea is based around DOL at 199, trend continuation with fib 1.618 and FVG at 201. Support was prior news resistance level.
This is not financial advice for anyone, its solely my take on predicting the next move for GBPJPY.
happy holidays
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