Christopher Lewis
Add to Bookmarks
GBP/JPY daily chart, May 17, 2018
Bank of England text on a UK Fifty pounds note

The British pound initially rallied against the Japanese yen during trading on Wednesday but found the 149 level to be a bit too resistive to continue to go higher. On the hourly chart, we have formed a couple of shooting stars, which is a negative sign. I think at this point it’s likely that we will roll over again, for at least a short-term move. I think there is significant support at the 148.25 level, at least on short-term charts. If we break down below there, the market is likely to test the 148-level next. Otherwise, we can break above the 149.25 handle, then I think the market probably goes looking for the psychologically and structurally important ¥150 level.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

I believe that volatility will continue to be a major issue in this pair, and that if you are nimble enough, you could trade this pair somewhat back-and-forth, but we do have a couple of levels that are worth paying attention to and could direct where we go over the next several days. I think it will be very volatile, so keep your position size small as it could cause quick losses if you are not careful enough. I believe that the market is going to need to pullback a couple of times to build up the necessary momentum to go higher, assuming we even can. Pay attention to risk appetite, it will have a lot to do with where we go next.

GBP/JPY  Video 17.05.18

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

Trade With A Regulated Broker