The British pound has gone back and forth during the course of the trading session yet again on Tuesday, as the ¥140 level continues to cause a bit of confusion. This makes sense though, because the market has moved so drastically to the upside, and therefore probably needs to take a break. Ultimately, this is a market that is continuing to see a lot of noise in general, because the Brexit of course is a complete nightmare at this point. Three years later, and we still are trying to figure out what’s going on with that complete mess.
GBP/JPY Video 13.11.19
That being said, the British pound against the Japanese yen is very highly sensitive to risk appetite in general, so pay attention to the stock markets around the world, and of course bonds as well. If the markets are showing a huge “risk on” type of attitude, then this pair will eventually break out to the upside. The 200 day EMA sitting just below is a major support level, so that should continue to keep this market somewhat afloat. If we can break above the ¥141 level, then it’s likely that the market would kick off to the upside as the previous action looks a lot like a bullish pennant and could send this market towards the 100% Fibonacci retracement level. That opens up the door to the ¥148 level, and then possibly even the ¥150 level. That would obviously be a very bullish sign in general, and therefore should coincide nicely with several different other markets in general.
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This article was originally posted on FX Empire
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