Prime Minister Boris Johnson started his new position yesterday after winning the election with a 2-1 majority. As he assembles his pro-Brexit cabinet, the British Pound was able to stabilize at strong support levels and at extreme oversold conditions. The GBPJPY ascended slowly and is now approaching the upper band of its horizontal support area. Will bullish momentum be strong enough for a breakout? Subscribe to the PaxForex Daily Fundamental Analysis and take the profitable side of this currency pair!

Here is the key factor to keep in mind today for British Pound trades:

• UK CBI Reported Sales and CBI Total Distributed Reported Sales: UK CBI Reported Sales for July are predicted at -8 and CBI Total Distributed Reported Sales are predicted at -5. Forex traders can compare this to UK CBI Reported Sales for June which were reported at -42 and to CBI Total Distributed Reported Sales which were reported at -22.

The Japanese Yen is caught in crosscurrents as economic data continues to be weak wile safe haven demand from forex traders remains strong. As the global economy is on track to cool further and geopolitical risks remain elevated, volatility in the Japanese Yen is anticipated to remain high. The GBPJPY is ripe for a short-term reversal before the downtrend may extend. How much upside does price action have? Today’s fundamental analysis will explore the upside potential as well as the downside risk from current levels.

Here are the key factors to keep in mind today for Japanese Yen trades:

• Japanese Corporate Service Price Index: The Japanese Corporate Service Price Index for June increased by 0.7% annualized. Economists predicted an increase of 0.8% annualized. Forex traders can compare this to the Japanese Corporate Service Price Index for May which increased by 0.9% annualized.
• Japanese Buying Foreign Bonds and Japanese Buying Foreign Stocks/Foreign Buying Japanese Bonds and Foreigners Buying Japanese Stocks: Japanese Buying Foreign Bonds for the period ending July 19th was reported at ¥1,027.8B and Japanese Buying Foreign Stocks was reported at -¥76.8B. Forex traders can compare this to Japanese Buying Foreign Bonds for the period ending July 12th which was reported at ¥949.6B and to Japanese Buying Foreign Stocks which was reported at -¥18.6B. Foreign Buying Japanese Bonds for the period ending July 19th was reported at ¥133.2B and Foreigners Buying Japanese Stocks was reported at -¥110.0B. Forex traders can compare this to Foreign Buying Japanese Bonds for the period ending July 12th which was reported at ¥844.3B and to Foreigners Buying Japanese Stocks which was reported at -¥93.1B.

Should price action for the GBPJPY remain inside the or breakout above the 134.250 to 135.250 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 134.850
• Take Profit Zone: 138.300 – 139.550
• Stop Loss Level: 133.850

Should price action for the GBPJPY breakdown below 134.250 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 133.950
• Take Profit Zone: 131.000 – 132.000
• Stop Loss Level: 134.850

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