GBPJPY Daily Outlook – On Tuesday China announced new tariff waivers for some U.S. imports, the Fed said it will be starting its long-awaited corporate bond program, while the U.S. consumer prices in April dropped by the most since the Great Recession. The UK will continue paying wages to out-of-work employees until the end of October, and a key economic indicator in Japan fell at the fastest pace since 2011 in March and the government warned of a deep recession as the coronavirus crisis takes a heavy toll on business activity and consumer spending.
Welcome to the Tickmill update, I’m Kiana Danial the founder of the Invest Diva movement. Make sure to subscribe to the Tickmill YouTube channel and support us by liking and sharing this video with your forex trading friends.
On Wednesday we’ll be looking at the UK GDP and Australia’s unemployment rate.
Today I’m looking at the GBP/JPY pair which broke below the daily Ichimoku cloud last week, completed its correction phase, and could get under further pressure after the UK GDP report on Wednesday.
A medium-term strategy could be shorting the pair at around 132, and taking profit at the 38% and the 50% Fibonacci retracement levels of 131 and 130 respectively.
Do you think the GBP/JPY pair is bounded for further drops? Head over to the Comments section and let me know.
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