Close Preview x  
     
Close x
Expert Advisor Hosting Request

Please provide the following information:
(All Fields Required)

X My Account Secure Account Login Login

Close x
Online Security

Secure login
Ensuring the security of your personal information is of paramount importance to us. When you sign in to the trading platform, your User ID and password are secure.

The moment you click Login, we encrypt your User ID and password using 128-bit Secure Sockets Layer (SSL) technology.

Browser security indicators
You may notice when you are on our website that some familiar indicators do not appear in your browser to confirm the entire page is secure. Those indicators include the small "lock" icon in the bottom right corner of the browser frame and the "s" in the Web address bar (for example, "https").

To provide the fastest access to the trading platforms, we have made signing in to trading platforms secure without making the entire page secure. Again, please be assured that your ID and password are secure.

Close x

We would like to contact you by telephone to help you make the most of your demo account, and inform you about our products and services. By submitting your telephone number you agree that FOREX.com can contact you by telephone.
Submit
 
Privacy policy
Market risks sustain GBP/JPY pressure

Updated  Mar 20, 2017 1:50:00 PM Written by James Chen, CMT



Aside from a sharp rebound in late January, GBP/JPY has been entrenched in a downtrend for the past three months. This downtrend has been exacerbated in part by ongoing concerns over the impending triggering of Article 50 that will begin the UK/EU separation process (Brexit), which has weighed heavily on the pound. At the same time, global macro risk considerations have helped provide somewhat of a boost to the perceived safety of the Japanese yen.

Confirmation from the UK that Article 50 will be triggered on March 29 has further weighed on the pound on Monday, as concerns remain that the lack of a concrete trade agreement between the UK and EU could make a negative impact on the UK’s economy and currency.

Though much of the market’s worries over Brexit and Article 50 have already been priced into the lagging pound in the past several months since June’s Brexit referendum, many unknowns still remain as to how the UK’s economic landscape will unfold as the process of separation begins in earnest.

Aside from Brexit, near-term geopolitical risks in Europe and the US, which include the upcoming French presidential elections and US scrutiny over the Trump Administration’s dealings with Russia, could lend to some further support for the safe-haven yen.

Amid these fundamental market risks that have persisted in placing pressure on GBP/JPY, the currency pair continues to follow a falling trend line that extends back to the mid-December high around 148.00. Furthermore, price action has recently been trading in a relatively tight range between its key 50-day and 200-day moving averages, which suggests that the currency pair remains in consolidation and could be poised for a breakout move as the noted market risks unfold.

Ahead of these risks, the directional bias for GBP/JPY continues to lean towards the downside, in-line with the prevailing medium-term trend. If the currency pair continues to respect the noted downtrend line, a clear downside target is at the key 137.00 support level, which is also in the vicinity of the noted 200-day moving average and the 50% retracement of the October-December uptrend.


Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that FOREX.com is not rendering investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. FOREX.com is regulated by the Commodity Futures Trading Commission (CFTC) in the US, by the Financial Services Authority (FCA) in the UK, the Australian Securities and Investment Commission (ASIC) in Australia, and the Financial Services Agency (FSA) in Japan. Please read Characteristics and Risks of Standardized Options.

FOREX.COM TWEETS

Test your trading strategies risk free btn_demo_blue_hover.gif OR btn_open_an_account_dark_grey_alt_hover.gif

Have more questions?

Chat Live Now or call 0800 032 1948