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Christopher Lewis
Bundle of Japanese Yen notes

The British pound has gone back and forth over the last several sessions, with Monday being more the same. The ¥140 level is a large, round, psychologically significant figure that is going to cause a certain amount of back and forth. Ultimately, the market looks as if the flag being broken to the upside it could send this market much higher, perhaps another thousand pips or so. Short-term pullback should continue to offer buying opportunities going forward, as the market has been so bullish out of late, and simple digestion of those gains makes quite a bit of sense.

GBP/JPY  Video 05.11.19

The 200 day EMA sits just below, offering significant support so that of course is something to pay attention to as well. Ultimately, this is a market that should continue to go much higher, and therefore offer an opportunity to profit quite handsomely on a longer-term move. However, a certain number of patients will be needed in order to take advantage of this move, as there are a lot of potential Brexit headlines out there that could cause issues. Once we get through the election’s nonsense and all of the potential twist and turns involving that, the market should continue to go higher. If the market was to break down below the 200 day EMA, it could unwind towards the ¥135 level, but that seems to be the least likely of scenarios as the market is getting rather comfortable hanging around the ¥140 region. That in and of itself is a very bullish sign.

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