Should investors be wary of a pullback in GBP/JPY after seven consecutive days of gains?
25.09.2024
- Taiwan: Industrial Production
- U.S. New Home Sales
In yesterday’s U.S. trading session, the Canadian dollar strengthened during U.S. hours, trailing only the New Zealand dollar. The CAD/JPY pair rose from 105.903 to 107.048, moving from below the 20-period moving average (MA) to above it on the hourly chart. On the 4-hour chart, the price has already broken above the 200-period exponential moving average (EMA) resistance line with a real body candle, and on the daily chart, the RSI has rebounded from the oversold level of 30 to 53.
Among European currencies, the pound rose against the yen. The GBP/JPY pair climbed from 191.313 to 193.306. The price moved along the +2σ line of the hourly Bollinger Bands. On the 4-hour chart, the 10-period moving average (MA) is acting as support, and the daily chart shows seven consecutive days of gains. However, on the weekly chart, the 20-period MA resistance line looms overhead, so traders should keep a close eye on price movements during European trading hours.
Today’s economic indicators include the Australian Consumer Price Index at 10:30, the French Consumer Confidence Index at 15:45, and the UKremarks by MPC member Green, Taiwan’s Industrial Production at 17:00, the U.S. MBA Mortgage Applications Index at 20:00, Brazil’s Extended Consumer Price Index at 21:00, U.S. New Home Sales at 23:00, U.S. Weekly Crude Oil Inventories at 23:30, the U.S. 5-Year Treasury Auction at 26:00, and remarks by Fed Governor Kugler at 29:00.We should be wary of a pullback in GBP/JPY, which has posted seven consecutive bullish candles.
Author: Keisuke Sakurai
