Market Forecast 23/10/2017
The British Pound is in an uptrend above 149.80 vs the Japanese Yen. AUDUSD remains sell on rallies near 0.7830-40.
GBP/JPY Forecast – British Pound Downsides Limited
- The British Pound climbed higher recently and moved above 149.00 against the Japanese Yen.
- There was a break above a major resistance trend line at 149.75 on the hourly chart of GBP/JPY.
- Today in Japan, the Leading Economic Index for August 2017 was released by the Cabinet Office.
- The outcome was above the forecast of 106.00, as there was a rise from the last revised reading of 105.2 to 107.2.
The British Pound after consolidating above the 147.80 level against the Japanese Yen started an upside move. The GBP/JPY pair made a nice upside move and traded above the 149.00 resistance and the 100 hourly simple moving average.
There was also a close above a major resistance trend line at 149.75 on the hourly chart of GBP/JPY. It opened the doors for more gains above 150.00. The pair traded as high as 150.47 before it started correcting lower.
The pair is currently trading lower and approaching the 23.6% Fib retracement level of the last wave from the 147.88 low to 150.47 high at 149.86. The mentioned 149.86 is also near the broken resistance trend line.
Therefore, any dips from the current levels will most likely find support near 149.80.
Japan’s Leading Economic Index
Today in Japan, the Leading Economic Index for August 2017 was released by the Cabinet Office. The forecast was slated for a minor rise from the last reading to 106.00.
The actual result was above the forecast of 106.00, as there was a rise from the last revised reading of 105.2 to 107.2. Moreover, the Coincident Index was forecasted to increase to 117.00. Again, the outcome was positive, as there was a rise from the last revised reading of 115.7 to 117.7.
The GBP/JPY pair might correct a few pips, but remains supported on the downside near 149.80-60.
AUDUSD – Aussie Dollar Remains Sell on Rallies
- The Aussie Dollar failed to break the 0.7880 resistance against the US Dollar and moved down.
- There was a break below a bullish trend line with support at 0.7830 on the hourly chart of the AUD/USD pair.
The Aussie Dollar moved higher this past week, but was not able to gain strength above the 0.7880-0.7900 levels against the US Dollar. As a result, the AUD/USD pair started a downside move and traded below the 0.7840 support plus the 100 hourly simple moving average.
During the downside, the pair even broke a bullish trend line with support at 0.7830 on the hourly chart. It traded as low as 0.7801 and is currently correcting higher.
It has moved above the 23.6% Fib retracement level of the last drop from the 0.7882 high to 0.7801 low. However, the broken trend line at 0.7830 may now prevent gains. The 38.2% Fib retracement level of the last drop from the 0.7882 high to 0.7801 low is also near 0.7833 to act as a resistance for more upsides in AUD/USD.
Risk Disclosure: By trading a leveraged product your capital is at risk.
The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.
For more information on risks, please read our General Risk Disclosure.