The British pound finds support against Japanese yen

The British pound bounced from the longer-term trend line that I have marked on the chart during the day on Monday, and therefore we have broken above the 148 level again. Because of this, I think that the market is trying to rally from here, but I suspect that we are going to continue to see a lot of selling pressure above.
Christopher Lewis
GBP/JPY daily chart, May 08, 2018
Japanese ten thousand yen banknote

The British pound has bounced from the 147 level below, breaking above the 148 level. By doing so, the market looks likely to attempt a breakout above the small cluster just above, but if we do get above there, I think there are plenty of areas above that could be sold, with the 150 level being massive resistance, and it’s not until then that I would consider this market as one that can be bought with any type of confidence. I believe that the market will eventually break down a bit more, before reaching down to the 146 level. I think longer-term, we could be looking towards the 145 handle as well, as it is a large, round, psychologically significant number and of course has offered reactions in the past.

If we did break above the 150 handle, then that of course would show a major shift in attitude, and it also gives us a couple hundred pips worth of positivity between now and then. That of course would be something to pay attention to as well, and therefore would be something that I can believe in. Until then, I think we are probably going to see sellers jump in on short-term rallies, and at the first sign of exhaustion. That has been the way going forward for several days, so I think we should continue underneath. The 145-level underneath is my longer-term target, but I also recognize is can you take a lot of work to get there.

GBP/JPY  Video 08.05.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US