Forex traders will continue to follow Brexit developments after the UK Parliament delayed a vote on Saturday which forced PM Johnson to ask the EU for a delay. He sent a delay request, but didn’t sign it. This was followed by a signed letter stating he doesn’t want a delay. On the economic front, monthly Rightmove House Prices came in much stronger then expected. How will the confusion impact price action in the GBPJPY today? Today’s fundamental analysis will take a look at price action in both directions.
The latest confirmation that the global economy continues to falter came out of Japan which reported a much bigger than expected contraction in exports while imports decreased slightly less than anticipated. The All Industry Activity Index came in flat which missed expectations for an increase, but the Japanese Yen maintained its position as global risk factors are on the rise. How will the GBPJPY trade through the Brexit uncertainty? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here is the key factor to keep in mind today for British Pound trades:
- UK Rightmove House Prices: UK Rightmove House Prices for October decreased by 0.2% monthly and increased by 0.6% annualized. Forex traders can compare this to UK Rightmove House Prices for September which decreased by 0.2% monthly and which increased by 0.2% annualized.
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese Trade Balance: The Japanese Trade Balance for September was reported at -¥123.0B. Economists predicted a figure of ¥54.0B. Forex traders can compare this to the Japanese Trade Balance for August which was reported at -¥143.5B. The Japanese Adjusted Trade Balance for September was reported at -¥97.2B. Economists predicted a figure of -¥178.1B. Forex traders can compare this to the Japanese Adjusted Trade Balance for August which was reported at -¥116.7B. Exports for September decreased by 5.2% annualized and Imports decreased by 1.5% annualized. Economists predicted a decrease of 3.6% and of 2.8%. Forex traders can compare this to Exports for August which decreased by 8.2% annualized and to Imports which decreased by 11.9% annualized.
- Japanese All Industry Activity Index: The Japanese All Industry Activity Index for August was reported flat at 0.0% monthly. Economists predicted an increase of 0.1% monthly. Forex traders can compare this to the Japanese All Industry Activity Index for July which increased by 0.2% monthly.
Should price action for the GBPJPY remain inside the or breakdown below the 139.350 to 140.750 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 139.850
- Take Profit Zone: 135.750 – 136.450
- Stop Loss Level: 141.000
Should price action for the GBPJPY breakout above 140.750 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 141.000
- Take Profit Zone: 142.850 – 143.200
- Stop Loss Level: 139.850
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Did you know that you can earn more pips per trade simply by switching to PaxForex? Sign-up now and boost your profits!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
