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Christopher Lewis
GBP/JPY

The British pound fell significantly during the trading session on Wednesday, reaching down towards the ¥135 level before turning around and forming a very supportive looking candlestick. At this point, the market is dancing around the 200 day EMA, near the ¥136 level. I do think that we eventually break out to the upside so a move above the highs from the Tuesday session would confirm that the market should go looking towards the ¥140 level over the longer term. This does not mean that we get there overnight, but clearly it would open up the doors for a bigger move.

GBP/JPY Video 23.07.20

The British pound has been stubbornly bullish against most currencies, regardless of the United Kingdom and its slew of problems. With that being said, I think that this is simply going to continue to grind higher and more of a “risk on” move, but we may have a little bit of work to do in this general vicinity. Ultimately, I do think that we go higher and go looking towards the ¥140 level. The 50 day EMA which is starting to curl towards the ¥134.50 level is now offering significant support, and it is clear to me that Forex traders are starting to look for growth anywhere they can get it, and of course with the Japanese yen being a safety currency, it makes sense that it is starting to get a little bit hit. Buying the dips continues to work, but I really like the idea of buying a breakout above the Tuesday session.

For a look at all of today’s economic events, check out our economic calendar.

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