Christopher Lewis
Add to Bookmarks

The British pound initially pulled back during the trading session on Monday to reach down towards the ¥150 level. That being said, the market looks very likely to continue to see buyers on these dips, as it looks like we are trying to build some type of support in this general vicinity, it is obvious that we are in an uptrend and now it looks like we are trying to continue the overall momentum. Furthermore, when you look at the Friday candlestick, it is obvious that there were a lot of buyers out there. Because of this, we should see a little bit of continuation and the fact that the 50 day EMA underneath should continue to cause a bit of support as well, as it is such a highly followed technical indicator.

GBP/JPY Video 20.04.21

All things been equal, it looks like we are trying to build up some type of support that we can continue the overall uptrend, as more of a “risk on” type of attitude takes over the markets. With that being the case, I think that it is going to be almost impossible to short this pair anytime soon, and even if we broke down below the 50 day EMA, I believe that there would be plenty of support near the ¥145 level to keep this market afloat as well. All things been equal, this is a market that I think continues to see buying pressure, and if the USD/JPY pair can hold some sense of stability, that will also put downward pressure on the yen as well, keeping this market afloat as well.

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.

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

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