Good morning team,
Looking across the board risk assets have recovered from key support zones as the market appears to have stabilized.
SP500 – Daily Charts
ASX Daily Charts
the ASX and SP500 have both bounced technically from the rising trend line support, there has not been a confirmation of a breakdown just yet. Yes, the wedge is getting very tight but it wouldn’t surprise me if the market moved to new highs from here. With this in mind, we may see the JPY devalue based on a risk-on sentiment.
GBPJPY – Daily Charts
Another technical bounce here on the GBPJPY which is a key support zone and also a rising trendline support level. There is possibly a head and shoulders formation setting up with the 152.50 resistance providing a target level. The UK has removed Covid-19 restrictions which should provide a bullish outlook for the GBP compared to other currencies.
GBPJPY – 4 Hour Charts
Trade Setup: Buy market execution, current price 149.80, stop loss 148.50 and take profit target 152.50.
Stop loss: 130 pips
Take profit: 270 pips