The British pound has gone back and forth early on Monday to show signs of stalling out. At this point, there is a significant amount of resistance between the ¥129 level and the ¥130 level above that. Beyond that area we have the 50 day EMA turning lower and trying to catch up with that region. At this point in time I feel it’s only a matter time before the sellers come back into this market, because quite frankly the Brexit is still a complete mess, and therefore it’s difficult to put a lot of faith into Sterling at this point.
GBP/JPY Video 20.08.19
On the other side of the equation we have the Japanese yen which of course is a major “safety currency.” At this point, I believe that the Japanese yen will be one of the most favored currencies as we enter a lot of concerns into the equation this fall. While we have fallen quite a bit, it does make sense that we get a little bit of a bounce in this general vicinity that we have seen over the last several days. At this point, I think it’s only a matter of time before the sellers come in and push this market lower. Quite frankly, I believe that the ¥130 level Will continue to be massive resistance and to keep this market down. At this point, I believe that the pair will continue to drive lower, perhaps targeting the ¥127 level again, and then possibly even the ¥125 level longer-term.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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