The Japanese yen was seen trading higher against other major currencies, including the British pound during this past week. Moreover, the British pound also moved a bit lower. We were bearish on the GBPJPY pair, as we continue to remain so, until the pair breaks a particular scenario to turn bullish again. So, selling in the short term looks like a good option to me.
There is a bearish trend line on the 4 hour chart for the GBPJPY pair. There is also an important support formed around the 172.70-60 levels. If the mentioned support level fails to hold and pair moves below the support, then we can enter into a sell position. Remember, the pair needs to respect the highlighted trend line in order for this trade setup to be valid, as a break above the trend line might negate the bearish view.
Initial target should be around the 172.10 level, and final target could be around the 171.80 level. Stop should be placed above the 173.10 level.
Major events scheduled in the upcoming week
The US dollar surge continued this past week against most other major currencies. The incoming economic data was on the positive side, including the inflation data. The pairs like EURUSD, AUDUSD and NZDUSD traded lower. It is important to note that there was no substantial retracement for the EURUSD pair, as it continues trading lower. So, there is a chance that the US dollar might correct in the short term against the Euro and the British pound.
Let us look at all major events lined up in the upcoming week.
Sunday – No Economic release.
Monday – US services PMI, US pending home sales data and Japanese unemployment data.
Tuesday – US CB consumer confidence and Japan’s industrial production data.
Wednesday –Spanish CPI and GDP, Euro zone consumer confidence, US ADP nonfarm employment change, US GDP and FOMC interest rate decision.
Thursday – German retail sales, Euro zone CPI, German unemployment data, Canadian GDP, US Chicago PMI and Chinese manufacturing PMI.
Friday –German manufacturing PMI, UK manufacturing PMI, Euro zone manufacturing PMI, US nonfarm payroll data, US unemployment rate and ISM manufacturing PMI.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, EURGBP, GBPCHF, EURJPY, USDCAD, AUDCAD, NZDUSD, EURNZD, GBPNZD, AUDUSD, AUDNZD, EURAUD, WHEAT, CORN and INDICES.
Get it HERE: Vladimir’s Markets Forecast
Happy trading friends!
