GBP/JPY: Levels, Ranges, Targets

 

Friends, readers and followers are invited to understand and view short to long term currency markets from the EUR/USD and CAD/ZAR perspective from 3 months to 1953 or 65 years. Most important relationship in all traded markets is EUR/USD V CAD/ZAR.

Wide ranges are seen in GBP/USD and GBP/JPY and wide ranges is defined at 10 pips higher than EUR/USD and EUR/JPY. The laggard pair is USD/JPY at 20 pips lower which means GBP/USD and GBP/JPY are performing the work to USD/JPY.

The only location short term where GBP/JPY is seen as far to low is viewed in 2016 or roughly a 2 year average. From 2018 to 2009, GBP/JPY is correctly positioned middle range in relation to GBP/USD and USD/JPY. A crossover is threatened in 2010 and 2009 while 2007 is also viewed where GBP/JPY is much to low and needs to travel higher. Dated to Feb 1999, GBP/JPY price is low and out of range.

Most important pair to GBP/USD and the BOE is GBP/JPY as GBP/JPY must be contained in order to hold GBP/USD to desired exchange rate levels. Therefore its imperative for the BOE to maintain GBP/USD correlations to GBP/JPY or GBP/USD trades against desired levels.

From 144.56 lows to upper most 172.46 highs, Mid point is located at 158.51. At 158.51 is above the 10 year average at 152.45. From 144.56 to 152.45, Mid point is located at 148.50. Current GBP/JPY trades at lowest points in its 18 year range.

To travel higher, 150.46 and 150.63 must break to target first 151.25 at the 80 day. Next above break is 149.16 and 149.38.At 144 is a severely misplaced average but overall GBP/JPY averages lack uniformity.

80 day = 151.25

Special average = 150.46

Close = 149.10

335 day = 144.56

Close = 149.10

593 day = 149.38

848 day = 160.11

1103 day = 162.53

1279 day = 5Y = 161.00

1357 day = 159.60

1614 day = 154.04

1873 day = 150.63

Close = 149.10

2130 = 149.16

2385 day = 148.80

2562 day = 10Y = 152.45

2640 day = 154.50

2894 day = 161.59

3151 day = 165.60

3410 day = 168.10

3590 day = 14Y = 169.65

3667 day = 170.07

3922 day = 171.38

4175 day = 172.23

4429 day = 172.18

4687 day = 171.77

4899 day = 172.46

 

Brian Twomey

 

 

 

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