Welcome to another AspireFX blog. Today we’ll be looking at the Pound versus the Yen and the potential moves we could see as this week comes to a close as well as heading into next week.
Looking on the 4 hour chart above, we can see we’ve been trending to the downside between two descending trend lines which have been acting as dynamic support/resistance. If this upper trend line holds as resistance we will see further downside movement, however, if we break through the trend line, we would then look at the major key level 135.000 next for possible reversal signals to the downside.
Looking at the 1 hour time frame, we can see that we are currently rejecting the upper trend line and forming a doji on the 78.6 which indicates a slow down in price and indecision in the market. If we see a breakout through this trend line as well as 135.000, watch out for a retest of the trend line as well as 135.000 for upside movement.
In terms of news events for the remainder of the week, there’s Yen news coming out tomorrow at 01:30 AM (GMT+2) where they will release the National Core CPI for June. For further downside movement, we’d look out for a positive data release and if the news comes out negative be on the look out for a break and retest as spoken about above. The pound lost some strength this week with their month over month GDP coming out significantly worse than expected, we saw a recovery today though due to a string of positive data releases with the most notable being their Average Earnings Index.
It’s important to take the necessary news events into account when considering entering any setups! Remember to always wait for candlestick confirmation before executing any trades and always stick to your trading plan! Hit the follow button below to receive blog updates sent directly to your email.