The British pound drifted a bit lower during the trading session against the Japanese yen, as you can see on the daily chart. Ultimately, this is a market that has seen a lot of noise as of late, and of course the Brexit is going no favors. We recently got an extension for the Brexit scenario lasting six months, meaning there may not be much in the way of headlines the move the British pound overall. If that’s going to be the case, it’s very likely that we are simply going to drift around overall.
GBP/JPY Video 19.04.19
The ¥145 level will of course attract a lot of attention, as it is a large, round, psychologically significant figure. Beyond that we also have the ¥144 level underneath which extends the entire support zone. A breakdown below that level could send this market much lower overall as it would be a serious breach of support.
To the upside, the ¥147 level is massive resistance on short-term charts, and there’s even more resistance at the ¥148.50 level. At this point, a break above that level could send this market to the ¥150 level. When I look at the longer-term charts, there is a bullish flag that we are paying attention to, and therefore I think the measurement of the flag is something you should take into account, which suggests a price of ¥155. Obviously, we need some type of certainty with the Brexit to get this market moving, but longer-term a deal will probably send this pair higher. Buying on the dips continues to work but you need to be very patient.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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