Today we will talk a bit about the cross currencies that are traded in the fx market. Many of us know that in the fx market we can trade with the majors (Those include the currencies traded against the USD), commodities ( those include oil ,gold ,silver and those are traded against the USD as well) and of course last but not least are the crosses, many traders, professional and new are still wondering how to read and analyze the crosses. The answer to this is very simple, we will take for example the pair GBP/JPY what most of you didn’t know is that if we will break this pair up, we can find there 2 pairs that directly effect it overall performance, those pairs are the GBP/USD and USD/JPY. By observing these 2 pairs we can clearly see the direction of this pair. For example if we follow the trend of the last week, we see a stronger Yen against the USD and a weaker GBP against the USD, thus we can determine that the Yen is going to gain strength against the GBP as well.
Let’s go a head and analyze this amazing pair:
GBP/JPY
Over the last few weeks we saw how the GBP and the JPY moved in a range between 163.00 to 148.00 over a daily chart. Then the support line for the GBP broke and we can find that in the last few days the GBP is getting weaker while the JPY appears to be gaining strength. It is not easy to analyze where this pair will go from here. The market can find a resistance at 144.20, but for that we will need to get some results from the fundamental news coming out today from the U.K, US and Japan.
Keep your eyes open and look for the trend this pair will set following the announcement today.
Resistances
143.70 – 145.50
Supports
141.35 – 140.30
Fundamentals: We have a few announcements today which will affect the market.
Coming from United Kingdom, we have the “Confederation of The British Industry Realized Sales”.
The previous announcement was -16 and the forecast for today is -15. (10:00 GMT).
one more announcement coming in from United States is the “Consumer confidence” which will be released at 14:00 GMT. The previous announcement was 54.1 and the forecast for today is 56.8. Look out for both announcements to have an impact on the market today.
