Jump to content

Haven demand and growing UK struggles likely to drive GBP/JPY weakness

Recommended Posts

Haven demand and growing UK struggles likely to drive GBP/JPY weakness

GBP/JPY looks likely to fall further, with the construction PMI highlighting the growing hurdles faced by the UK economy.

bg_pound%20GBP%20sterling%2003.JPGSource: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Wednesday 06 October 2021 

Construction PMI highlights growing economic struggles

The UK is facing a growing economic crisis as energy prices surge and supply-chain friction make business increasingly difficult.

That was evident in today’s construction Purchasing Manager's Index (PMI) reading, with the survey seeing costs rise, supply shortages worsen, and output growth slow for a third consecutive month. The situation is clearly taking a turn for the worse, and businesses are likely to bear the brunt of it.

On a wider scale, the UK is faced with a particularly bad time to be cast adrift of mainland Europe from a regulatory perspective, with Brexit bringing additional friction when seeking to bring supplies into the country.

That provides a warning sign that we could see the economic recovery derail somewhat, raising demand for havens over the pound.


Construction_PMI_ACTIVITY.PNG.pngSource: IHS Markit; CIPS

GBP/JPY looks set for another turn lower

GBP/JPY has been on the back foot today, with the pair turning lower in what looks like a continuation of the four-month downtrend seen since May.

Looking at the daily chart, we can see how trendline resistance has once again come into play here. A break up through 152.57 would bring about a more positive outlook, yet the bulls are expected to remain in charge until such a break occurs.


GBPJPY-Daily61021.pngSource: ProRealTime
Link to comment
15 hours ago, neonred said:

Well done Josh Mahony , saw you on Yahoo finance today . I managed to get caught out on that Gas pull back.  have to say wasn't expecting that. Nice interview


Hi @neonred

Thanks, I will pass on the remarks to Joshua Mahony. We wish you well for the future.


All the best - MongiIG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 12/08/22 08:37
  • Posts

    • KLA Corp., Elliott Wave Technical Analysis KLA Corp.,(KLAC:NASDAQ): Daily Chart, August 12, 2022,  KLACStock Market Analysis:Looking for further continuation lower into wave c) of {ii}. Wave (b) may not be finished, however I am still looking for further downside after the initial move up we had in a five wave manner. KLAC Elliott Wave count:  Wave c) of {ii}. KLACTrading Strategy: wait for the end of wave {ii} to start building long positions to target ATH. KLAC Technical Indicators:We are above all EMAs which suggests we have resumed the uptrend. We could find support off the 200 EMA. TradingLounge Analyst: Alessio Barretta       KLACorp.,KLAC: 4-hour Chart, August 12 2022,  KLA Corp., Elliott Wave Technical Analysis KLAC Stock Market Analysis: Looking for completion of wave (b) to then resume downside into wave c) which could eveb be traded on short timeframes. KLACElliott Wave count:  Wave c of (b). KLAC Technical Indicators: We are facing resistance off the 20 EMA which could be a sign wave (b) is completed or nearly completed. KLACTrading Strategy: You could either look for shorts into wave c) or/and wait for a larger swing once wave {ii} is finished and target he upside with wave {iii}.
    • Elliott Wave Analysis TradingLounge 3-Daily Chart, 12 August 2022, Monero(XMRUSD) XMRUSD Elliott Wave Technical Analysis Mode: Motive Structure: Impulse Position: Wave I Direction Next higher Degrees: Wave C of Zigzag Details: The sub-wave of the first wave is about to end. Watch out for the reverse in Wave Cancel invalid Level: Monero(XMRUSD) Trading Strategy: The entry price is entering the last wave of the first wave. And it is going up to test resistance at MA50, waiting for a reversal in the second wave to enter the trend again. Monero(XMRUSD) Indicators: MACD and MACD Histogram have a reversal signal in an uptrend. TradingLounge Analyst: Kittiampon Somboonsod Elliott Wave Analysis TradingLounge 4H Chart, 12 August 2022, Monero(XMRUSD) XMRUSD Elliott Wave Technical Analysis Mode: Motive Structure: Impulse Position: Wave ((4)) Direction Next higher Degrees: wave I of C Details: Entering the fifth wave. Watch out for the reverse Wave Cancel invalid Level: Monero(XMRUSD) Trading Strategy: The short-term rise of the fifth wave After the fourth wave The level of the end of the triangle pattern is at The end of wave D, but if the price descends below the end of wave E, it is possible that the fifth wave may end at wave B. Monero(XMRUSD) Technical Indicators: MACD and MACD Histogram continue in the same direction.
    • Hi @ArturG, I added a response on the thread you shared. Effectively, the rule apply to UK clients. You can find the relevant text here:https://www.legislation.gov.uk/eur/2014/1286/body I hope that it helps ! All the best - Arvin
  • Create New...