-USDJPY trading inside the bullish channel forming series of higher highs and lows

-GBPUSD formed bearish price pattern – Ascending triangle

JAPAN (JPY): JAPAN GROSS DOMESTIC PRODUCT (GDP) – QoQ

Gross Domestic Product (GDP) measures the change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.  Japan’s GDP declined to 0.2%, lower than the forecast of 0.5%.

The report is due Wednesday, 8 March at 23:50 GMT

USDJPY Technical Analysis:

Analysis using price action:

USDJPY was in a downtrend until it formed its bottom at $127.220 on Jan 16th, 2023. The $128.00 level is now acting as a major support, with price trading above it. On Jan 13th, the 50MA crossed the 200MA below, forming a death cross and signaling bearish pressure.

After the bottom formation, the next push move broke the previous swing high. The price is now trading inside a bullish channel showing market reversal and bullish sentiment. The market is now trading inside the most recent swing high at $137.106 and the support. With the price trading below 200MA and above 50MA, the market shows it may move in range for some time before moving in a certain direction. The RSI line is at 61.82, showing an overbought condition.

Traders may wait for the beak of support or the resistance for a better trading opportunity, keeping in mind the overall trend is an uptrend.

Pivot Points: USDJPY

UK (GBP): UK GROSS DOMESTIC PRODUCT

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.  UK GDP declined to -0.5%, lower than the forecast of -0.3% and lower than the previous month which was 0.1%.

The report is due Friday, 10 March at 07:00 GMT

GBPUSD Technical Analysis:

Analysis using price action:

GBPUSD recently gave a good trading setup by forming a “Double Top” pattern. On 14th Dec 2022, the price made a swing high, followed by a pullback. The next push move touched the previous swing’s high level but did not break it. In the process, the market also formed a golden cross suggesting the price may move upwards. After the successful formation of the double-top pattern, the price started to come down again. 

The market has another pattern formed known as Descending pattern, which is a bearish pattern. The confluence of the double top and descending pattern suggests the market may trade downwards. Currently, the RSI line shows 46.94, signaling a neutral overbought and oversold condition. Both the moving average is close to each other, with the price trading in between. 

Traders must wait for the price to break below the triangle pattern for a clear trading signal.

Pivot Points: GBPUSD

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