GBP JPY shortingHello analyst and traders,
we have our update for GBP JPY - price finally rejected the daily 50%, we entered a little late but with GBP JPY - you need resilience as Gold does it's own moves with investor sentiment as a safehaven likewise with the Yen.
Looking at the technicals;
- using Fibonacci retracement from the top of the structure to the bottom, we have a clear liquidity zone between 50-61.8% retracements.
- Fibonacci has shown a nice fakeout in previous days in which was a great place to react.
COT report data GBP & Yen
Yen
Long Short Total % long %short
AVG 13 52,126 26,087 78,214 67% 33%
AVG 20 52,767 35,495 88,261 62% 38%
AVG 50 50,276 50,470 100,746 53% 47%
GBP
Long Short Total % long %short
AVG 13 31,932 47,607 79,538 41% 59%
AVG 20 42,237 43,334 85,572 49% 51%
AVG 50 43,326 68,512 111,838 41% 59%
With reference to previous postings, these are still very much in play.
Technicals:
What can we see technically?
- Daily bearish but breaking momentum short in the channel.
- weekly bearish zone touched
- bounce from the demand zone
- we can see the trend beginning to add long positions to correct - this has now occurred. so now we reject the 136 level.
- now in a consolidation zone with some great wicks formed and a reversal to the upside - this has been boosted by GBP Tuesday as of writing.
- With Gold going up we can see some nice downside for GJ
-Large downside gap to fall to if price looks to create a new low structure in bearish confluence and momentum trading.
- COT report in favour of Yen.
Fundamentals
Aussie is a commodity currency so is highly affected with exports of natural resources, Gold , Oil , Grains, Copper etc.
UK lock down has caused issues for the restart of the border, Brexit news is also a kicker for bearish news.
USD cases, will still cause strength of safe haven currencies.
Note: Trading is about timing. so even if our stop loss gets hit on the chart. We may not have entered all together and orders can be adjusted.
Trade what you see, this is purely our Bias.
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