Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis

The British pound slammed into the ¥136 level during the trading session on Monday to kick off the week with more of a “risk on vibe.” However, the ¥136 level is most certainly an area where we have seen a lot of selling, and a major inflection point over the last couple of weeks or so. You can see that several of the candlesticks leading to the breakdown were shooting stars, so there is obviously a lot of sell orders in that general vicinity. This leads the markets to interesting point, because we will probably make a rather significant decision in this general vicinity.

GBP/JPY Video 29.09.20

Keep in mind that the 200 day EMA is just above, so that offers a certain amount of resistance as well, and therefore should be paid attention to. You could make an argument for the “death cross” with the 50 day EMA crossing below the 200 day EMA here soon, but most of the time that signal is rather late. The market will continue to move based upon risk appetite in the latest Brexit headline, so that something that needs to be kept in the back of your mind as well. It certainly looks as if it is favoring the downside, so I would expect a “sell the rallies” type of attitude to enter this market rather quickly.

With the United Kingdom also talking about locking down parts of the economy, that cannot possibly have a positive effect on the British pound as well. In fact, quite a bit of what has sent the British pound higher during the day was a Bank of England member denying any talk of negative interest rates. At the end of the day, has anything really changed?

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

  • Your capital is at risk
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.
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.