The British pound has tried to rally during the trading session on Friday, but quite frankly it was very quiet trading as we go into the weekend. Keep in mind that a lot of the larger traders have been away for holiday and won’t actually get back to work until Monday. That being said, this is a market that looks as if it is trying to grind its way higher, and quite frankly a bounce from the 50 day EMA does a lot to suggest that is in fact going to be the case. Furthermore, there was also a bullish flag that we have bounced from so that’s another thing to pay attention to.
GBP/JPY Video 13.01.20
Looking at this chart, it’s obvious to me that the market does want to go higher, but it is going to take a significant amount of momentum to continue to go to the upside. Quite frankly, this is a market that is hanging on towards the Brexit scenario, and we don’t have anything new at the moment. Because of this, is very likely that we will continue to see choppy behavior but it’s only going to be a matter of time before we do reach towards that ¥148 level again. To the downside we have a lot of support in the form of the ¥140 level, so it should be noted that it’s only a matter of time before we would have some type of bounce from those lower levels. I have no interest in trying to short this market anytime soon.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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