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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

79% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

Trading insights: Japan 225 outperformer, JPY underperformer last 5 days

Copy of Blog Images - Skilling - 2023-08-11T102000.403

Market Talk:

Indices spotlight:

As we near the end of the week, Japan 225 index +2%, EU Stocks 50 +1% and the US SPX500 lags behind regional stock indices down -0.25% during the previous five days of trading.

Screenshot 2023-08-11 102206
Chart 1

Chart 1 illustrates the five day relative percentage performance of the US S&P500 index vs the Japan’s 225 index and the Euro stock 50 index.

FX spotlight:

While Japan equities outperform during the last 5 days, in FX land the JPY gets hammered over the same period.

Screenshot 2023-08-11 102240

Chart 2 illustrates the five day relative percentage performance of the Japanese YEN (JPY) vs the USD, EUR and GBP.

Screenshot 2023-08-11 102307
Data source: Skilling/Tradingview as of 11/8/2023 7:45 UTC


Today’s economic calendar

United Kingdom GDP growth beats forecast, GBP strengthens across the board:

  • UK gross domestic product (GDP) beats market consensus for the quarter, and year

Screenshot 2023-08-11 102336

GBP/USD reaction after the upside in UK GDP: The GBP strengthened against the USD following the data release.

Screenshot 2023-08-11 102409
Source: TradingView / J. Knobel August 11 2023 6:27 AM UTC


Trading prospective:

GBP/JPY - prospects for upside breakout?

Screenshot 2023-08-11 102435

Technical commentary: GBP / JPY

The GBP / JPY is currently trading near an eight year high, current price 183.81 facing resistance around the 184.75 area which if price manages to clear above could trigger a bullish extension move towards the 190s as a possible extension move higher. Downside risk seen below the 181.20 support (see chart).

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Not investment advice. Past performance does not guarantee or predict future performance.