GBP/JPY: What can we expect from this pair now that we have bounced from 132.500
Good afternoon Traders and welcome back to EverythingFX. Brand new months which means we can see how September's Monthly candle closed too!
The Great British Pound is currently trading at 133.252 against the Japanese Yen during today's London session!
Let's take a look at the weekly timeframe for starters. Talk about a bearish closure. A massive bearish reversal off a level of resistance of 135.000 as mentioned in the Technical Floor where our members banked over 250 PIPs on their short positions!
Technically, Dropping down to the Daily timeframe where we can see some sort of shift in momentum off of these levels of support in and around 132.500. Upon yesterday's daily candlestick closure we printed a fairly indecisive candlestick formation which is a best used when spot on the daily timeframe. What you will see on a lower timeframe is then an area of consolidation where we have been trapped in for several trading days now! I am however anticipating a break to the upside upon a break of 133.250 which is playing as a minor level of daily resistance! Upon a break out of this, i Io expect a push into the 134.000/134.500 region where we will then evaluate where the price is heading next!
Fundamentally, we had Manufacturing PMI's out in the UK today where we saw a tick up in the reading with 48.3 figure being released slightly better than the consensus of 47.0 and better than previous of 47.4, We need to take into consideration we are still in contraction territory so nothing to get too excited about.
Politically, We have PM Boris Johnson who has commented saying that he will be returning to the House of Commons today to present potential Brexit possibilities leading up to the leave date on the 31st of Oct. Do stay tuned to our market news section, twitter feed and social media accounts for further updates.