The Japanese Yen has been performing better against most of its major counterparts this week. Apart from the US 10y T-Note moving up, one of the main reasons the yen has been strong is due to the Japanese fiscal year end (1 April – 31 March). As we move towards the end of march, this is a period where we see large inflows in yen pairs. Japanese firms and investors repatriate their profits meaning that the buy the yen. We then see the Nikkei falling as money is moving out of the stock markets into banks. Also as a pound bear, I will be looking for selling opportunities. The UK is pushing hard for the implementation of the Brexit referendum that was voted for last year. The outcome of that is to the downside against the pound.

Economic Data

Though there aren’t any top tier economic data from either countries, market participants will be looking at today’s UK retail sales report. A better report is expected compared to last month’s. It is not given that the outcome will be good as wage growth has slowed. The British consortium reported a smaller decline in shop prices and spending, both remained negative.

GbpJpy Daily Chart

Price has been trading through a descending triangle over the past 2 months or so with 139.5 holding as a key level of support. The moving averages are flat and it has been ranging this month between the monthly pivot and 139.5 as it was moving closer to the apex of the triangle. We might see it break the downside of this support as we near the triggering of article 50. Immediate support is seen at 137.39

GbpJpy H4 Chart

Price broke down through through the bottom of the range it was trading with for the past 3 weeks. Market action action moving averages are now starting to shoe a bearish sentiment as they are now diverging from each other. Price is currently at the role reversal and I will be looking to to sell at 139.00.

GbpJpy H1 Chart

With price currently at a bear area zone, and also taking note of the pivot cluster between WM2, MM2 and DM3 and also a key level of resistance at psych 139.00, it only makes sense to start looking for selling opportunities from here.

2 thoughts on “GBPjPY short setup”

  1. Teboho Faro says:

    Great BIAS put into technical analysis

    1. Tsholanang Tsholanang says:

      Makes life a bit easy

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