EJ Returned to This Week Opening Price Level, Illustrating A Correction in the Yen Pairs

As predicted earlier, the Yen’s increase began to be limited. The market has begun to assume that the prices of currency pairs, especially those related to the Yen, have begun to be overpriced.

Selling sentiment on the EUR-JPY pair was strongly resisted at the start of trading today. After opening in the range of 122.65, the Euro gained momentum and experienced a rise of 78 pips (until this article was revealed).

Correction of the bearish trend is also experienced by the USD-JPY pair. The increase experienced by the USD-JPY pair was recorded at 56pips.

GBP-JPY also experiences conditions that are not much different. The consolidation experienced by the pair since morning has brought a price increase of 81pips.

ej-returned-to-this-week-opening-price-level,-describing-a-correction-in-the-yen-pairs

EJ Trading Plan in US Session

After moving up from the daily support level S1 (122.53), the price of EJ continues to creep up to pass the pivot and R1. The beginning of the US session, EJ is still moving limited in the price range of pivot (123.22) and R2 (123.43). EJ’s strength began to weaken and appeared to try to rise several times to test R2 but fell again.

In the American session, it seems that EJ will again try to climb up and try to break R3 (123.58), but if R3 is impenetrable, it is likely that prices will again fall and form a sideway pattern.

 

The GBP / USD Pair is Unable to Rise Higher due to Winding Process of Brexit (May 8, 2019)

The GBP / USD pair is unable to rise higher because of the tough negotiations related to Brexit. Quoting Bloomberg, Wednesday (8/5), at 6:30 a.m. WIB, GBP / USD was in the range of 1,3008 or fell as much as 0.51%. Analysts see an opportunity for further weakness tomorrow.

We suggest that the protracted Brexit issue that has not been resolved further shows the outlook that Theresa May is threatened to lose her position as Prime Minister of England. After a peak agreement in Brussels which stated that the UK has time to leave the European Union until October 31, 2019, it seems the plan will leave.

“May is considered unable to provide an agreement that can be agreed upon by the opposition party. In the midst of the lack of important data releases that can add high volatility to GBP / USD, it seems that the Brexit issue is still a negative sentiment,” as predicted by our analyst.

Not only that, conditions that helped weaken the pound in the eyes of market participants also came from banks in the UK which would shift their business to other places.

Reuters quted that only six of the 11 of 17 British and global supported the idea of ​​a repeat vote to break the parliamentary impasse in the separation of Britain from the European Union.

Four banks said they opposed the new vote, while one bank said it would remain agnostic on all Brexit scenarios and would allow the ongoing political process.

To prepare for Brexit, the bank has transferred billions of pounds to new EU legal entities and shifted around 2,000 roles from London to new hubs in cities including Dublin, Paris, Frankfurt and Madrid.

While the condition of the dollar also did not strengthen the market players because of the threat of Trump to increase the import tariff of Chinese products from 10% to 20%.

We project, GBP / USD will continue to fall. It is estimated that tomorrow GBP / USD will move in the range of support 1.2990 – 1.3015 – 1.3040 and resistance range 1.3100 – 1.3120 – 1.3150. We recommend sell on strength.