In Focus: GBPJPY Cross

With no real news from the EU-Zone and most market participants pacified from the market volatility last week, price movement have been quite subdued with investors/traders more sidelined. The reluctance of most analyst to over speculate the next market direction have even diminished except for the dramatic decline of the oil market. 

Apparently, some traders and commodity analyst have attributed the decline from the recent remarks made by Fed Chairman Ben Bernanke that fueled the US Dollar to move lower currently resting at a relief recover @79.12 basis point as of this writing. Market tone remains bearish while a mild correction across the board were seen in today's market. Event risk traders are simply waiting for some fresh incentives that may eventually trigger volatility in prices. However, news wires are fixated on the oil, precious metals and the Dow's succeeding performance levels. And in the Asian region, the USDJPY may take some lead for the week while the upcoming Bank of Japan Monetary meeting would take shape along with Bank of England's minutes this Wednesday that would be the lead currency for this mid-week ahead.

GBPJPY WEEKLY AS OF 9.18

With Cable remaining at a favorable tone @1.6235 some analyst have stated the over-extended bullish levels on both the GBPUSD and the EURUSD @1.3057 corrective mode respectively. That is also the reason why we have been slightly early on our mid-term positioning on the GBPJPY @125.09 dated the 7th of Sept. which resulted with a tolerable short-term floating loss within 3days. Until the market moved favorably last Thursday & Friday's directional trend higher. Currently in the position's favor at the working price levels of 127.59 as of this writing as well. Depending on the other pairs relative price action, extensions for the GBPJPY cross are well within a range of 127.60 to 127.02 on the lower side of the previous day's trading bar, but not lower than the 125.50/80 range support.

For now the market is vulnerable to any fundamental reports that may arise outside of the scheduled calendar of events, but remain in clear watch with the currency pairs correlated with the Japanese Yen, Cable and the Euro pairs.