The heightened anxieties and visible uncertainties about the potential impact of a Brexit vote on the UK economy continue to haunt investor attraction towards the Sterling and this has consequently encouraged GBPJPY bears to break back below the 164.00 support. This pair was already heavily bearish as there have been consistently lower lows and lower highs while the MACD also traded to the downside. With prices already below both the daily 20 and 50 SMA, previous support at 164.00 may become a dynamic resistance which should encourage a further decline towards 156.00. A bullish move back above 166.50 suggests bearish weakness and invalidates this daily bearish outlook.
With risk aversion remaining rife in the global markets appetite for safe-haven assets such as the JPY has installed a wave of selling into the USDJPY which is currently heavily bearish. There have been consistently lower lows and lower highs in this pair while the MACD also trades deep into the downside. Dollar weakness only fuels the bears and breakdown below 112.00 should encourage another decline towards 110.00.
Parity has acted as a strong resistance which has put an end to the sharp relief rally on the USDCHF. This pair still remains bearish as prices are trading below the daily 20 SMA while the MACD points to the downside. A breakdown below 0.9850 should encourage a further selloff towards 0.9700.
This pair is tremendously bearish on the daily timeframe as prices have sunk over 300 pips this trading week. The catalytic combination of EUR weakness amid the growing expectations of further stimulus measures from the ECB mixed with Yen strength has resulted in a pair which has plummeted in the months of February. A decisive break below the 125.00 support should encourage a further decline towards 118.50 in the medium term.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.