A medium to long-term Bullish view on GBPJPY
It has been a while that I have not had a detailed review of a pair and it was just signals sent out.
In this review I would like to investigate a medium to long term plan for trading GBPJPY .
I am on this pair and here are the reasons that I think YEN will depreciate and Sterling will appreciate.
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First let’s review the reasons that I am long on YEN.
1) Here is the monthly weighted average YEN which shows how storng YEN is in compare to other 7 major currencies.
see how all 2018 it has been trying the break the upper band of the formation and could not. September candle has been closed very after have Aug candle making a false breakout of the highs. So this is a very chart and if you count you can see three attempts to go higher all failed.
and on the daily it broke the and made two attempts to go higher and could not and closed the Friday as a candle. You can see how the last a few days YEN has been trading below the major 2018 and could not reverse inside the previous channel.
To replicate weighted average please see the screenshot title.
3) Next chart is Japanese YEN Yields and negative correlation is expected. See how on weekly chart made a classic break of the upper band of the and hold above that as the upper band acted a support and see how it is heading higher.
Line chart looks even better
Zooming in we see how Sterling trapped between these two dotted lines supports and resistance.
It is likely Sterling to reach the support before heading higher again but looking at a very shorter Time Frame we have a that suggest that Sterling may go higher from here as it respected the lower band of the .
2) Bonds are negatively correlated with FX. See how Bonds have unfinished business after the breakout of the key . I expect this market to reach the rising . The lower the bonds go the higher GBP goes.
3) Gilts are the same as Bonds. Unfinished business for Gilts too. See how it has been falling for the last a few weeks. Have we seen this much bullishness in Sterling. NO…!
5) Last market if FTSE and we expect an opposite correlation.
See how it touched the mid-band of the old channel and a pullback is expected.
Finally let’s review GBPJPY
1) See how on Monthly chart it made 3 attempts to get off the EMAs and go higher. It could not
I hope you enjoyed this analysis.
Do not forget to hit the LIKE bottom if you enjoyed and leave a COMMENT.
Many thanks friends,