GBPJPY Fundamental Analysis – October 10th 2019

Here are the key factors to keep in mind today for British Pound trades:

• UK RICS House Price Balance: The UK RICS House Price Balance for September decreased by 2.0% monthly. Economists predicted a decrease of 7.0% monthly. Forex traders can compare this to the UK RICS House Price Balance for August which decreased by 4.0%.
• UK Industrial Production and UK Manufacturing Production: UK Industrial Production for August is predicted flat at 0.0% monthly and to decrease by 0.8% annualized. Forex traders can compare this to UK Industrial Production for July which increased by 0.1% monthly and which decreased by 0.9% annualized. UK Manufacturing Production for August is predicted to increase by 0.2% monthly and to decrease by 0.4% annualized. Forex traders can compare this to UK Manufacturing Production for July which increased by 0.3% monthly and which decreased by 0.6% annualized.
• UK Construction Output Seasonally Adjusted: UK Construction Output Seasonally Adjusted for August is predicted to decrease by 0.4% monthly and by 0.2% annualized. Forex traders can compare this to UK Construction Output Seasonally Adjusted for July which increased by 0.5% monthly and by 0.3% annualized.
• UK Trade Balance: The UK Visible Trade Balance for August is predicted at -£10.000B. Forex traders can compare this to the UK Visible Trade Balance for July which was reported at -£9.144B. The UK Trade Balance Non EU for August is predicted at -£2.800B. Forex traders can compare this to the UK Trade Balance Non EU for July which was reported at -£1.932B. The UK Total Trade Balance for August is predicted at -£1.050B. Forex traders can compare this to the UK Total Trade Balance for July which was reported at -£0.219B.
• UK GDP: The UK GDP for August is predicted flat at 0.0% monthly and to increase by 0.1% for the three-month-over-three-month period ending in August. Forex traders can compare this to the UK GDP for July which increased by 0.3% monthly and which was reported flat at 0.0% for the three-month-over-three-month period ending in July.
• UK Index of Services: The UK Index of Services for August is predicted flat at 0.0% monthly and to increase by 0.2% for the three-month-over-three-month period ending in August. Forex traders can compare this to the UK Index of Services for July which increased by 0.3% monthly and by 0.2% for the three-month-over-three-month period ending in July.

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

• Japanese Bank Lending: Japanese Bank Lending including Trusts for September increased by 2.0% annualized and Japanese Bank Lending excluding Trusts increased by 2.2% annualized. Forex traders can compare this to Japanese Bank Lending including Trusts for August which increased by 2.1% annualized and to Japanese Bank Lending excluding Trusts which increased by 2.2% annualized.
• Japanese Machine Orders: Japanese Machine Orders for August decreased by 2.4% monthly and by 14.5% annualized. Economists predicted a decrease of 1.0% monthly and of 8.4% annualized. Forex traders can compare this to Japanese Machine Orders for July which decreased by 6.6% monthly and which increased by 0.3% annualized.
• Japanese Domestic Corporate Goods Price Index: The Japanese Domestic Corporate Goods Price Index for September was reported flat at 0.0% monthly and decreased by 1.1% annualized. Economists predicted a flat reading of 0.0% monthly and a decrease of 1.1% annualized. Forex traders can compare this to the Japanese Domestic Corporate Goods Price Index for August which decreased by 0.3% monthly and 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 October 4th was reported at -¥428.3B and Japanese Buying Foreign Stocks was reported at ¥233.3B. Forex traders can compare this to Japanese Buying Foreign Bonds for the period ending September 27th which was reported at ¥870.9B and to Japanese Buying Foreign Stocks which was reported at ¥319.9B. Foreign Buying Japanese Bonds for the period ending October 4th was reported at ¥913.9B and Foreigners Buying Japanese Stocks was reported at ¥1,072.5B. Forex traders can compare this to Foreign Buying Japanese Bonds for the period ending September 27th which was reported at ¥399.0B and to Foreigners Buying Japanese Stocks which was reported at -¥221.2B.

Should price action for the GBPJPY remain inside the or breakdown below the 130.400 to 132.100 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 131.300
• Take Profit Zone: 126.550 – 127.450
• Stop Loss Level: 132.550

Should price action for the GBPJPY breakout above 132.100 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 132.550
• Take Profit Zone: 133.850 – 135.150
• Stop Loss Level: 132.100

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