The British pound is relatively quiet most of the week, even against the Japanese yen. With that in mind, it should not be a huge surprise that we are still sitting just above the 132 young level. Ultimately, I think that this market will eventually make a move, but ¥132 seems to be rather important. The 50 day EMA above will cause quite a bit of resistance, so at this point I think I have a range that I can trade from.
If we can break above the 50 day EMA then it is likely that this pair goes looking towards the ¥135 level. That area being broken to the upside would of course be very bullish and could send this market much, much higher. To the downside, we can obviously pay attention to the ¥132 level, and a breakdown below their opens up the possibility of a move to the ¥129 level.
GBP/JPY Video 29.06.20
At this point, the market is likely to see a lot of choppiness on short-term charts, but I think that by the time we get into next week, there might be some news over the weekend or just general momentum to move this pair in one direction or the other. This is a market that is overly sensitive to risk appetite so keep that in mind. Overall, this is a market that I think is going to continue to react to a lot of headline noise, which there are plenty of possibilities out there that could cause major issues. Looking at this chart, I will need to see a relatively impulsive candlestick on the daily chart to put money to work.
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This article was originally posted on FX Empire
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