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Technical Analysis GBPJPY : 2021-04-14

Recommendation for GBP/JPY:

Sell
Strong SellSellNeutralBuyStrong Buy

Below 148.5

Sell Stop

Above 153.5

Stop Loss

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Senior Analytical Expert
Articles 1735
IndicatorValueSignal
RSI Sell
MACD Neutral
MA(200) Neutral
Fractals Neutral
Parabolic SAR Sell
Bollinger Bands Neutral

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, GBPJPY: D1 broke down the uptrend support line. A number of technical analysis indicators formed signals for a further drop. We do not exclude a bearish move if GBPJPY: D1 falls below the last 2 lower fractals and the lower Bollinger band: 148.5. This level can be used as an entry point. We can place a stop loss above the maximum since April 2018, the last high fractal, the upper Bollinger band and the Parabolic signal: 153.5. After opening a pending order, we can move the stop loss to the next fractal high following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (153.5) without activating the order (148.5), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.

Fundamental Analysis

British economy is recovering slowly. Will the GBPJPY quotes continue to fall?

The downward movement indicates the weakening of the British pound against the Japanese currency. British February economic data turned out to be worse than forecasts: trade balance (-16.4 billion pounds) and construction volumes (-4.3%). Industrial production (-3.5%) and manufacturing production (-4.2%) were better than projected, but they still declined in February, in annual terms. The information of the possible leave of Andrew Haldane, chief economist at the Bank of England (BoE), also negatively affected the pound. Previously, he advocated tightening the monetary policy of the British regulator. Note that on April 14, Jonathan Haskel, who is a member of the BoE Monetary Policy Committee, will make a speech. Also on April 14, Fed Chair Jerome Powell, as well as Haruhiko Kuroda, the head of the Bank of Japan, will deliver a speech. All this can affect the GBPJPY dynamics. UK Labour Productivity data for the 4th quarter will be published, too. The Japanese yen is strengthening for the second week in a row amis positive economic data and lower US Treasury bond yields. Japan's Machinery Orders data for February will be released on April 14: the outlook is positive. Previously, Machine Tool Orders for March showed impressive growth. In the previous week, several positive Japanese economic indicators were published at once, including the Eco Watchers Survey, consumer confidence index, current account balance, and others.

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