EUR/JPY rebounded from the 123.00 level on the H4. The pair formed a “piercing line” pattern.
How to trade GBP/JPY after the election
Information is not investment advice
GBP/JPY is correcting down after the excessive advance that it made on the news that Boris Johnson’s Conservative Party has won the UK election. Last week the price managed to overcome the 200-week MA at 143.60 and 78.6% Fibo retracement of March-August decline at 144.00. Now these levels will act as support for the pound.
On the D1, we see bearish divergence between the price and the Awesome Oscillator. It means that the latest advance was too fast and that the pair may return to lower levels where buyers will be able to regroup.
On the H4, GBP/JPY is within a descending wedge. The fall below its support around 144.95 will open the way down to 144.00. In the meantime, the return above the upper border at 146.20 is needed to allow the pair to retest the recent highs that are just below 148.00.
NZD/CAD has reached a 200-week MA (0.8950) and formed a “shooting star” candlestick on the D1. On the H4, we see a lower high.
XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865.
The number of Americans applying for initial unemployment benefits came in at a larger-than-forecast 870,000 last week, signaling that the recovery in the labor market is losing momentum as the coronavirus pandemic lingers and layoffs continue apace.
The GBP is likely to move upward until it reaches the resistance of 1.2795.
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