The British pound initially tried to rally during the day on Tuesday against the Japanese yen, as the Europeans came back from Easter Monday. That being the case, we have seen more volume, and although the Asian traders out there trying to pick the market up, we rolled over and toward the ¥145 level almost immediately. That is an area that of course will offer a lot of interest, and I do believe that there is a significant amount of support based upon the ¥144 level underneath, not to mention the fact that the black 200 day EMA is slicing right in the middle of that area.
GBP/JPY Video 24.04.19
Rallies at this point will probably struggle, at least until we can break above the top of the candle stick. Ultimately, this is a market that I do think rallies eventually, but we also know that the Brexit is of course going to continue to cause issues when it comes to the British pound. Eventually will get some type of resolution, and that resolution should bring in more bullish pressure. Below current trading, you can see that the bullish flag is still marked on the chart. I suspect that this market will continue to pay attention to that flag, as it measures for a move to the ¥155 level. With that in mind, I am bullish longer-term but I also recognize that we probably have a little bit of grinding to do to the downside in the short term charts.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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