GBPJPY - Long Supported by Fundamentals and Technical
Fundamental Analysis:
Key indicators, including the LEI as well as endogenous and exogenous factors, show mixed to declining trends on a weekly basis. This points to a weakening outlook for GBP against JPY, reinforcing a bearish view on the pair
Seasonality:
Historically, GBPJPY tends to be bullish from the middle of the first week of December until the middle of the second week, suggesting a potential seasonal opportunity for long positions.
COT Report:
GBP has been at its lows for 13 and 26 weeks, while JPY remains neutral. The report highlights a buy bias for GBP and a sell bias for JPY, indicating potential opportunities favouring GBP. Additionally, flip data reveals a shift in market sentiment from bearish to bullish.
Technical Analysis:
GBPJPY has been in a downtrend, forming lower highs (LH) and lower lows (LL) on the 1H timeframe. Recently, it showed a bullish flag pattern, indicating a potential shift to an uptrend. The price has respected the bullish flag projection, bounced off its first rejection level, and formed a new higher low (HL). This sets up a potential long opportunity if the price breaks above the previous higher high and clears the first resistance.
Conclusion:
Consider going long on GBPJPY, as seasonal trends, the COT report, and technical indicators strongly favour GBP over JPY.
Entry Price: 192.400 (Buy Stop)
Stop Loss: 190.880
Take Profit: 193.9200
Key indicators, including the LEI as well as endogenous and exogenous factors, show mixed to declining trends on a weekly basis. This points to a weakening outlook for GBP against JPY, reinforcing a bearish view on the pair
Seasonality:
Historically, GBPJPY tends to be bullish from the middle of the first week of December until the middle of the second week, suggesting a potential seasonal opportunity for long positions.
COT Report:
GBP has been at its lows for 13 and 26 weeks, while JPY remains neutral. The report highlights a buy bias for GBP and a sell bias for JPY, indicating potential opportunities favouring GBP. Additionally, flip data reveals a shift in market sentiment from bearish to bullish.
Technical Analysis:
GBPJPY has been in a downtrend, forming lower highs (LH) and lower lows (LL) on the 1H timeframe. Recently, it showed a bullish flag pattern, indicating a potential shift to an uptrend. The price has respected the bullish flag projection, bounced off its first rejection level, and formed a new higher low (HL). This sets up a potential long opportunity if the price breaks above the previous higher high and clears the first resistance.
Conclusion:
Consider going long on GBPJPY, as seasonal trends, the COT report, and technical indicators strongly favour GBP over JPY.
Entry Price: 192.400 (Buy Stop)
Stop Loss: 190.880
Take Profit: 193.9200
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