The Japanese yen was seen trading higher against other major currencies, including the British pound during this past week. The GBPJPY pair traded towards the 172.60 support level. Currently, the pair looks like is under short-term correction. However, I think there is more room towards the downside in the pair and that is the reason why selling gains is a good option moving ahead.
There is a bearish trend line on the 4 hour chart for the GBPJPY pair. There is also an important swing resistance around the 173.40-50 levels. So, if the pair manages to climb higher from the current levels, makes a stop closer to the mentioned resistance area and forms a bearish divergence, then we can enter into a sell trade. Remember, the pair has to respect the highlighted trend line for this trade setup to be valid.
Initial target should be around the 172.40 level, and final target could be around the 172.00 level. Stop should be placed above the 172.80 level.
Major events scheduled in the upcoming week
The US dollar climbed higher during this past week against most of its counterparts. The incoming economic data which was released in the US was on the impressive side, which lifted the US dollar in the short term. The EURUSD pair was affected the most, as the pair dived below the 1.3500 level. However, the Euro buyers fought hard and managed to push the pair back up above the mentioned level. The British pound also moved lower, but recovered sharply from the lower levels. The Japanese yen was also seen gaining ground against major currencies during this past week.
Let us look at all major events lined up in the upcoming week.
Sunday – No Economic release.
Monday – German PPI and Chicago fed national activity data.
Tuesday – UK CBI industrial trend orders data, US CPI figures, US existing home sales data and Australian CPI figures.
Wednesday –MPC meeting minutes, BOE Carney’s Speech, Canadian retail sales data, RBNZ interest rate decision, Japanese trade balance data and Chinese HSBC manufacturing PMI.
Thursday – French manufacturing and service PMI, German manufacturing and service PMI, Euro Zone manufacturing and service PMI, UK retail sales data, US manufacturing PMI and US new home sales data.
Friday –German IFO business climate index, UK GDP and US core durable goods orders data.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: EURGBP, GBPUSD, GBPNZD, EURNZD, AUDUSD, EURJPY, WHEAT and CORN.
Get it HERE: Vladimir’s Markets Forecast
Happy trading friends!
