The British pound has gone back and forth during the trading session on Tuesday, as we continue to grind in a general upward fashion. Ultimately, I believe that this market will probably find a reason to make a move, most likely to the upside as the ¥135 level appears to be offering somewhat significant support. I think at this point it is worth noting that we are currently sitting between the 50 day EMA and the 200 day EMA, so technical traders will more than likely be paying attention to that. With that being said, it does create a little bit of a squeeze, so Price might have some trouble making a move in the short term. Longer-term though, that normally leads to a nice amount of momentum.
GBP/JPY Video 29.07.20
The trade set up for me is relatively simple when it comes to this pair, I am a buyer above the 200 day EMA and the seller below the 50 day EMA. Having said that, if we break down below the 50 day EMA I would target the ¥132 level, and probably not much more than that. To the upside, I think we could go as high as ¥139 relatively quickly, and then the ¥140 level and beyond. I do think that it is easier for this market to rally than it is to fall at the moment, but one thing that is not helping is the fact that the USD/JPY pair has been falling, showing Japanese yen strength. Remember, currencies are all a relative game.
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This article was originally posted on FX Empire
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