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Demand for Safe Havens

Market Analysis

GBPJPY, H1

Dollar weakness and safe haven demand for the yen are driving the move of most of the Yen and Dollar crosses. We have seen today, USDJPY tumbled some 50 pips since the London open, logging lows so far near 108.25. North Korea has escalated tensions by launching a missile over Japan, which comes with shaky political situation in Washington DC, and as markets try to assess the economic consequences in storm-hit Texas. Japanese data today showed unemployment falling to 2.8% in July and job availability rising for a fifth straight month.

GBPJPY cross however, seems that is trying to recover today’s losses and to continue the uptrend seen the last 3 days. However such scenario cannot be confirmed yet, in a Daily timeframe, since 141.50 resistance in Daily chart  still holds. Meanwhile, in a shorter timeframes such as the hourly chart, pair rejects intra-day support noticed at 140.35, and moves upwards again by breaking earlier the 50 period MA and hitting the 20-period MA as well. Due to this retracement, noticed on that level, an entry was taken on 140.85, i.e. after pair broke the 50-period MA upwards. Targets were set at 38.2 and close to 23.6 Fibonacci levels, which are at 141.00 and 141.20 levels respectively. Support is at 140.35. Nevertheless, RSI is Neutral look positive , while Parabolic SAR turned positive since morning.

 

 

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Andria Pichidi

Market Analyst

HotForex

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