Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

The Dragon Continues to See Buyers

[ad_1]

The interest rate differential supports a bullish outlook, but a resolution to the overall market sentiment is necessary.

During Monday’s trading session, the GBP/JPY experienced a slight decline, possibly due to concerns regarding the rapid approach toward the ¥175 level. Nevertheless, it is highly likely that the market will provide an opportunity for a pullback, allowing traders to capitalize on potential value. While the ¥170 level would be an attractive area for value, it’s important to acknowledge the presence of support levels between the current price and that level. The psychological significance of the ¥170 level and the 50-Day Exponential Moving Average nearing that point contribute to its mention as a noteworthy support level.

Advertisement

image

Among the support levels, the ¥171.50 level demonstrated multiple instances of support just over a week ago. It is plausible to expect buyers to enter the market around that level. Although this remains to be seen, the current situation indicates that it could be an opportune area for scaling into a position. It is worth considering that the interest rate differential between the British pound and the Japanese yen will likely continue to fuel a bullish market over time. However, ultimately, a resolution to the overall market sentiment will be necessary.

  • A major breakout would occur if the ¥175 level is surpassed, potentially driving the market towards ¥177.50 and eventually ¥180. If the Bank of Japan or the Bank of England does not introduce significant changes, there is little interest in shorting this currency pair.
  • It is important to note, however, that the market is somewhat overextended.
  • Despite this, there are still plenty of market participants willing to take long positions, and this sentiment is likely to persist. In general, the market is expected to remain noisy, but it is viewed in a positive light.

At the end of the day, the British pound experienced a slight decline in Monday’s trading session. The market is expected to offer an opportunity for a pullback, potentially providing value for traders. Support levels exist between the current price and the significant ¥170 level, with the ¥171.50 level being a potential area for buyer participation. The interest rate differential supports a bullish outlook, but a resolution to the overall market sentiment is necessary. A major breakout could occur if the ¥175 level is surpassed, leading to further upward movement. While the market remains somewhat overextended, many traders are still inclined to take long positions. Despite the noise, the overall outlook for the market is positive.

GBP/JPYReady to trade our daily Forex analysis? Here are the best regulated trading platforms UK to choose from.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.