PRE NFP Analysis: GBP/JPY Locked Below Bearish Order Block

June 02, 2017 12:49

Following a strengthening in CNH against the USD by the PBOC (The People's Bank of China), it sent the Equities Indices of the rival exporting nations in the Dax and Nikkei to interim highs. At the moment, we are seeing risk-on behavior in risky assets except for Oil, as Trump promises to sell some of the US Oil Reserves, raising downside risk to this market.

As we could read in my previous GBP/JPY analysis, the pair perfectly rejected and continued to be sold on rallies. At this point the GBP/JPY is locked below the bearish order block that stands in the POC zone 143.75-95 (Order block, D H3, trend line, 61.8, historical sellers). The NFP today along with unemployment and average hourly earning data should move this pair as it is connected to equities markets. If we see a rejection from POC, the target is 143.10. Break below 143.10 aims for 142.40 zone. A spike above 144.10 could get the pair to 144.61 D H5/ ATR top confluence. NFP is usually very volatile so using a VPS tool could be a good option if you trade NFP.

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W L3 - Weekly Camarilla Pivot (Weekly Interim Support)

W H3 - Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 - Weekly Camarilla Pivot (Strong Weekly Resistance)

D H4 - Daily Camarilla Pivot (Very Strong Daily Resistance)

D L3 – Daily Camarilla Pivot (Daily Support)

D L4 – Daily H4 Camarilla (Very Strong Daily Support)

POC - Point Of Confluence (The zone where we expect price to react aka entry zone)

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