GBPJPY Technical Outlook


Britain’s PM Theresa May is scheduled to meet executives from major finance companies today. What else does the 11 January GBPJPY Technical Outlook unveil?

11 January, GKFX– The GBP/JPY pair found takers around the support offered by the ascending trendline (sloping upwards from Aug. 24 low and Nov. 28 low) in Asia and moved higher to 150.80 levels.

Key Quotes

  • GBP/JPY defends key rising trend line support.
  • Risk reversals indicate rising demand for GBP puts.

The pair managed to avoid a break below the trend line largely due to upbeat UK manufacturing data and uptick in the USD/JPY data today.

However, the bearish bias in the options market has strengthened. The one-month 25 delta risk reversals fell to -1.15 (lowest level since Dec. 8) yesterday. It indicates rising demand for bearish bets on the GBP (put options).

Focus on Brexit

As per Reuters report, Britain’s Prime Minister Theresa May is scheduled to meet executives from major finance companies today to give them a clearer idea of what Britain’s European Union exit will mean for them.

It is feared that London’s vast financial services industry (which accounts for more than 10 percent of GDP) could be at a risk. There is already evidence of job losses in London’s financial industry due to Brexit related uncertainty.

The uncertainty could cap gains in the British Pound. Meanwhile, the pair could extend gains if the European stocks regain bid tone.

11 January GBPJPY Technical Outlook

A break above 151.19 (Dec. 26 low) would open up upside towards 151.94 (Nov. 1 high) and 152.08 (5-day MA). On the downside, breach of support at 150.38 (session low) would shift risk in favor of a drop to 149.41 (Dec. 15 low) and 149.00 (zero levels).

Disclaimer

This article “11 January GBPJPY Technical Outlook” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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