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British pound falls against Japanese yen during the week

By:
Christopher Lewis
Updated: Apr 21, 2018, 08:45 UTC

The British pound initially tried to rally against the Japanese yen during the week, but found the upward momentum lacking, thereby rolling over and reaching towards the 151 handle during the Friday session. However, we have several support levels underneath that should give buyers some hope.

GBP/JPY weekly chart, April 23, 2018

The British pound has initially tried to rally during the week but rolled over significantly to fall to the 151 handle. The market has a significant amount of support at the 150 level, and of course the pair of uptrend lines that I have on the chart. I think that it is only a matter of time before the buyers return, especially if we get good economic news, or better yet – avoid some type of trade war between the United States and China. Remember, this pair is highly sensitive to risk appetite, and I think with the market coming down, that should help this pair.

We did get a bit of confusion from the Bank of England this past week, suggesting that perhaps rate hikes weren’t planned as soon as one stock, and that of course was negative for the British pound. However, I think that the uptrend is very much intact, and it’s not until we smash you both of those trendlines underneath that I would be concerned. I believe that we will go looking towards the 155 handle, and then the 160 level. That doesn’t mean it’s going to be easy, but we are still in up trending channel. Even with this past week being negative, there’s nothing on this chart that has me concerned about the uptrend in the short term. While I do believe we will probably continue to go bit lower, I feel that looking for value underneath will probably be the best way to go.

GBP/JPY  Video 23.04.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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