FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
95,482,598Confirmed
2,039,653Deaths
68,169,314Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis

The British pound initially had a very strong showing on Monday, breaking well above the ¥134 level. However, we have seen a lot of resistance above the ¥134 level recently, and it appears that we are going to see more of the same. The pair is essentially consolidating, struggling just below the ¥135 level which of course is a psychologically significant figure, but we also have the 50% Fibonacci retracement level just above that level and furthermore we have recently seen the 50 day EMA break below the 200 day EMA, all of which are negative side.

GBP/JPY Video 07.04.20

This doesn’t necessarily mean that the market is going to collapse, but it clearly is running into a lot of resistance. It is worth noting that while the stock markets around the world had rocketed to the upside, this risk sensitive currency pair did flounder a bit. Because of this, it leads me to believe that we are quite ready to break out. If that’s going to be the case, it’s very likely that we are going to grind back and forth. That being said though, the market can break above the ¥135 level that would be an extraordinarily bullish sign and could send this market towards the ¥137 level.

Advertisement
Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

To the downside, there is a significant amount of support near the ¥132.50 level. Breaking down below there would of course be an extraordinarily negative sign and have traders coming in to start shorting this pair again. At that point, I believe that the market will make a move towards the ¥130 level which has both structural and psychological importance.

Advertisement
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

  • Your capital is at risk
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