FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks
GBP/JPY

The British pound initially pulled back during the trading session on Friday but then turned around to show signs of life again. The ¥138 level is an area that if the market can clear, we could go back towards the ¥139 level, possibly even the ¥140 level if we get more of a “risk on” type of environment. That being said, what is most interesting here is that we are sitting right at the previous break out, so we have pulled back in order to test that level. The 50 day EMA is starting to rise ever so slightly from the 200 day EMA which is also a sign that perhaps we are trying to go to the upside.

GBP/JPY Video 23.11.20

The target at the upside would probably be the ¥140 level, but I think at that point in time we would run into resistance yet again. I do like the idea of buying short-term pullbacks in this pair, as it seems like the matter what happens, the British pound gets a second lease on life. There seems to be an agreement upon market participants that the most likely outcome of Brexit is that there is some type of deal, and therefore the British pound is looking very cheap from a longer-term standpoint.

Advertisement
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.

If we do break down below the 200 day EMA, which is painted black on the chart, then we could go looking towards the ¥135 level. That is an area that is even more supportive, and therefore I would be very interested in going long at that point in time. Notice how I did not say anything about shorting this market, because quite frankly shorting the British pound has been very difficult.

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

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