GBP/Jpy Trading Idea! gbp/jpy pair seems to be on a bull run, however, the pair has retested the broken resistance level and is currently consolidating around the broken support level. Could pair this be a viable trading setup to catch some pips? read through to find out more.
Economic events on GBP
Being the head of the central bank, which controls short-term interest rates, he has more influence over the nation’s currency value than any other person.
Investors always inspect his public commitment as they are many times used to critical hints in regards to the future approaches.
Volatility is highly experienced during his speeches as traders attempt to decipher interest rate clues, more bearish than expected is good for the currency.
Flash Manufacturing PMI:
It measures the Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
A Survey of about 650 purchasing managers asks respondents to rate the relative level of business situation including employment, production, new orders, prices, supplier deliveries, and inventories.
Results of 50.0 above indicate industry expansion and below indicates contraction. There are 2 versions of this report released about a week apart – Flash and Final.
This is viewed as a proactive factor of financial well-being – organizations respond rapidly to economic situations, and their buying chiefs hold the latest and most significant knowledge into the organization’s perspective on the economy.
Economic events on Jpy
BOJ Gov Kuroda Hearings:
Volatility is often experienced during his speeches as traders attempt to decipher interest rate clues.
As head of the central bank, which controls short-term interest rates, he has an important influence over the nation’s currency value.
Traders examine his discourses as they most of the time used to drop unobtrusive hints with respect to future financial approaches and loan fee shifts.
Conclusion
Using the charts provided above we can observe closely that gbp/jpy pair traded within two strong price levels 150.000 and 158.000 for around five months from November to march when it was finally broken.
After it broke the 158.00 price level which served as resistance, the pair rallied up, and traded into the 165.000 price level, thus causing a price rejection, moreover forcing the pair to retest the broken resistance level.
GBP/jJPY pair has tested and bounced off the broken resistance level and we strongly consider this a viable setup for traders to look for opportunities to buy-In.
What are your thoughts on this gbp/Jpy trading idea? Is it useful ? or is it a waste of time? Let us know by commenting on this post or you can visit our community forum, and be sure to check back in the near future for more trading-related content.
“Chinedu is a Trader and content writer, With a passion for educating others about the financial markets. Through his writing, he works tirelessly to share insights and knowledge gained from years of experience trading in the financial market. He is dedicated to helping others achieve success in their journey by providing valuable information on what works and what doesn’t.