Can GBP/USD continue early strength?
IN_GBPUSD also saw a strong move lower yesterday from the $1.3217 Fibonacci resistance level. Once more, the ability to break above that 76.4% retracement would provide us with a key idea as to whether there could be enough in the tank to send the pair lower.
For now, a bearish view remains in place, with a break above the $1.3217 level required to provide a more neutral view. However, a break through $1.3249 would be required to truly make any dent in the view that we will soon see the pair selling off once more.
USD/JPY weakness likely to continue
Yesterday’s wedge rally in IN_USDJPY proved a good time to exit the market ahead of such a key event risk. Ultimately the rub of the green worked out in favour of our bearish overall view, sending the pair below the key ¥104.00 support level. This is likely to spark interest in further downside, yet it is worthwhile being cautious and awaiting retracements for short positions.
Given the size of the weakness overnight, any such retracement can be substantial. As such, while a bearish view persists, it pays to be selective when choosing where to enter once more. Given the long lower shadows on recent hourly candles, there is a good chance we could see this market stage a short-term rally before selling off once more.