GBPUSD, USDJPY Outlook – FXWW Chatroom

GBP/USD – Upside Bias. GBP rose amid broad USD weakness overnight. 
Last seen around 1.5690 levels. Daily momentum and stochastics 
indicators are showing tentative signs of mild bullish bias. That puts 
1.5790 levels in focus (76.4% fibo of Jun high to Jul low) before 1.59 
levels. Day ahead brings Retail Sales Ex Auto Fuel (Jul). brings no data.
USD/JPY – Capped. USD/JPY slipped below the 124-handle to a recent 
low of 123.69 on speculation that a Sep Fed lift-off is off the table. 
Markets gave short-rift to the weak data out yesterday that showed 
industrial activity coming in below market expectations (0.3% m/m vs. 
0.4%) and machine tool orders moderating 1.7% y/y in Jul compared to 
Jun’s 6.6% as the focus shifted to the Fed. Pair is now rebounding, 
inching closer back to the 124-handle at 123.86 on possible profittaking. 
With the Fed still in focus, look for upside to be curbed by 
124.15, while further dips limited by 123.50. 
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