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

Market Talk:

Indices spotlight:

As we near the end of the week, Japan 225 index +2%, EURO Stoxx 50 +1% and the US S&P 500 lags behind regional stock indices down -0.25% during the previous five days of trading.

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.

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

Data source: Skilling/Tradingview as of 11/8/2023 7:45 UTC

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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

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

Source: TradingView / J. Knobel August 11 2023 6:27 AM UTC

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Trading prospective:

GBP/JPY - prospects for upside breakout?

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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