GBP/JPY - Short trade still the best way to make profit

GBP/JPY - D1

Our expectations - The British economy remains weak, and the expectations among Canary Wharf specialists are that the country's indicators are yet to get worse. On the other hand, traders should consider the idea that the UK central bank raised interest rates during the August meeting. The probability is currently estimated at 70%, and this is a very controversial value as far as the past is concerned. At JPY, the prospects are slightly better, given the risks to the world economy caused by the war. Earlier today, it became clear that the Chinese Central Bank has taken drastic measures to boost the country's economy after the stock sale last week. Late last week, Donald Trump also supported the JPY, saying he would impose duties on European car imports in the United States.

Trump threatens 20% tariff on all car imports from the EU

Technically, the pair tested the main upward trend, tested the main diagonal and is now down. The price registers ever lower bottoms and lower tops. On Friday, we have a strong bear Price Action, formed as a result of Trump's threats. The cost reaches a resistance zone formed by a short diagonal, 23.6% Fibonacci correction and a basic horizon. 50 and 200SMA are bridged and RSI (14) remains below 50 - negative for the price. The current Pin Bars correction gives us a good positioning position with short positions at the maximum Stop Loss.

SL: 147,512

Alternative scenario: If the price went above the resistance zone, the negative scenario would be spoiled, and we are more likely to see an increase in GBP against JPY.

Read more:

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