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Traders Betting On Pound Strength Against Yen

Authored by TD Markets
03.08.2023
Technical Analysis
0
4 min
Traders Betting On Pound Strength Against Yen

In the fast-paced world of forex trading, traders are increasingly turning their attention to the British Pound (GBP) as it gains strength against both the Australian Dollar (AUD) and the Japanese Yen (JPY). This article explores the factors driving the Pound's recent surge and the potential implications for traders looking to capitalize on this bullish momentum.

The GBPAUD Performance

GBPAUD resumed the trend.

GBPAUD is trading within a bullish market. The ascending trendline provides support and the support zones are holding prices. According to this price action, traders are bullish and anticipate the market to continue trading to the upside. As such, traders are waiting for a retracement to the support zone around 1.91797 to provide trend continuation trading opportunities.

Traders Betting On Pound Strength Against Yen

The GBPJPY Performance

GBPJPY completed the descending structure.

GBPJPY recently broke out of the descending structure. This comes after the market aggressively rejected the lows of the structure and rallied above the previous resistance zones. This price action suggests that buyers are interested in this market.

At the moment the market is trading above the support zone around 182.013 as well as the descending structure. According to this price action, traders anticipate the market to continue trading higher and are waiting for a bullish continuation pattern to resume the trend.

Traders Betting On Pound Strength Against Yen

Read More: EUR, AUD & NZD Against The JPY This Week?

The JPN225 (Nikkei 225 index) Performance

The Nikkei is trading in bearish territories.

The Nikkei is trading within a descending structure. The recent price action suggests that traders are interested in selling this market as seen by how aggressively the market rejected the top of the bigger descending structure. This area was in confluence with the top of the inner ascending structure. 

At the moment the market has broken out of the inner structure. According to this price action, traders anticipate the market to drop back to the bottom of the descending structure and are waiting for lower timeframe bearish continuation patterns to confirm bearish momentum.

Traders Betting On Pound Strength Against Yen

Final Thoughts On Today’s Analysis 

Traders are actively monitoring the GBP's strength against the AUD and JPY, seeking potential profit opportunities in the forex market. Positive economic indicators in the UK, combined with certain challenges facing Australia and Japan, have contributed to the Pound's recent gains. 

As traders navigate these currency pairs, they should employ sound technical and fundamental analysis, practice effective risk management, and consider diversification to enhance their chances of success. Remember that forex trading involves risks and traders should exercise caution and stay informed to make informed decisions. Watch our YouTube channel to learn more about our market analysis. 

Authored by TD Markets
03.08.2023
Technical Analysis
0
4 min
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