Weekly trade idea on GBP/JPY.
Weaker PMIs and Retail Sales for the GBP.GBP has been producing some weaker data as of recently and I expect it to continue. The BoE have hiked their rates for a 4th time but have signalled there is less to come. A dovish hike and mixed data reports is giving a bearish tone for the currency.
JPY on the other hand has had a recent re-evaluation after the steep runs. Potential profit taking moving the market. Rising rates and the central bank's level of hawkishness could drive stocks lower, therefore driving the JPY higher.
- Resistance 159.00
- Support 156.400
Overall trend recently has been to the downside on the pair, I think this trend will continue into the near future and breaking lower lows as it moves.