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GBPJPY fails to break out for the second time!

Monday, June 11, 2018 1:05 PM GMT

Japan's machinery orders in April surged the most since the start of 2016, shifting the previous month's decline.

This gives expectations for a strong growth in capital expenditure, which is significant for economy's recovery.  Reviewing the G7 Summit, there was a tense escalation between US and Canada as U.S. President Trump called him "very dishonest and weak." Traders and Analysts are following closely the so-called trade war that Trump has begun.

Heading to the technical, the GBPJPY failed one more time to break out the long-term declining trend line (T1). The second rejection is currently in progress. Most analysts believe that the pair may reverse the bearish daily bias above 150 level (200 SMA is near).


Reviewing the hourly timeframe, the pair seems to consolidate around 148 and 146 area. As long as it stays above 200 SMA, it is having a positive intraday outlook. If GBPJPY makes a third attempt for a bullish breakout, it will have more probabilities to be a successful one.


(EMA = Exponential Moving Average, SMA = Simple Moving Average, 5EMA = Blue, 21EMA = White, 200SMA = Yellow)

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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