GBP/JPY continues to struggle with 150

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Updated: Apr 3, 2018, 06:05 GMT+00:00

The British pound rallied again during this week, but just as we have seen over the last 3 weeks, gave back quite a bit of the gains. We formed a shooting star, at a vital level that suggests that we will continue to find trouble in this area, and I think that the market will probably continue to see sellers come in the market here.

The British pound has initially rally during the week but ran into enough trouble at the 150 handle to turn things around and form a shooting star. If we can break down below the bottom of that candle, I think the market drops down to the 146 handle, possibly the 145 handle. We are testing a previous uptrend line, which should now be resistance, so it makes sense that we could struggle a bit here. It’s also a very negative looking chart and could suggest that we are starting to enter more of a “risk off” type of attitude around the world, as this market tends to be rather sensitive to the overall attitude of traders.

I believe that the market breaking the top of the shooting star would be very bullish sign and could free traders to look for the 155 handle above, but I think that the momentum certainly seems be running out for the buyers. This will be very interesting, as it could be akin to a “canary in the coal mine”, meaning that we could be seeing the beginning of a serious issue here.

When it comes to the currency markets, I think this might be one of the most important charts to pay attention to right now. I believe that the market is about to make a significant move, and this chart might be the first place you see it happening.

GBP/JPY Video 02.04.18

About the Author

Christopher Lewisauthor

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.