(MENAFN- DailyFX) Talking Points
GBP/JPY at risk for losses ahead of UK employment report Updated targets & invalidation levels Compete to Win Cash Prizes with FXCM";s Forex Trading Contest GBPJPY Daily GBPJPY 30min
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Technical Outlook: GBPJPY has continued to straddle the Brexit close at 139.61 after reversing off median-line resistance early in the week. Heading into the UK employment report tomorrow, the pair remains at risk for further losses while below Monday";s high with interim support seen at the weekly open at 138.96 and a near-term Fibonacci confluence at 137.64/93. A break below this level would be needed to validate a more significant correction targeting subsequent support objectives at 135.83/941 and the 61.8% retracement / slope support at 134.00/18- both areas of interest for possible exhaustion / long-entries.
From a trading standpoint, I would be looking to fade near-term strength for a move into structural support. A breach above median-line resistance would be needed to put the long-bias back in play with such a scenario -eyeing subsequent targets at 143.22 & 144.35/48. Keep in mind this is a wider-range setup with a quarter of the daily average true range (ATR) yielding profit targets of 80-88pips per scalp. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Deskand take advantage of the DailyFX New Subscriber Discount.
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A summary of the DailyFX Speculative Sentiment Index (SSI)shows traders are net long GBPJPY- the ratio stands at +1.51(60% of traders are long)-bearishreading Yesterday the ratio was +1.40. Long positions are 4.1% higher than yesterday and 9.6% above levels seen last week Open interest is 0.8% higher than yesterday and 14.7% above its monthly average. A net-long reading keeps the focus lower with an increase in long-exposure coming alongside a build in open interest suggesting that the immediate risk remains for accelerated losses heading into tomorrow";s UK employment report. Help fine-tune you entries, click here to learn more about the DailyFX Grid Sight Index (GSI) Relevant Data Releases This Week Other Setups in Play: GBP/USD Post-Brexit Rebound Eyes July High Ahead of UK CPI Webinar: USDOLLAR Threatens Breakout- Here are the Crosses to Watch USD/CHF Back Into the July Open- Bulls Look to U.S. CPI for Fuel GBP/USD: Post Brexit Rebound at Risk Into Bank of England Meeting
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---Written by Michael Boutros, Currency Strategist with DailyFX
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