The British pound did very little against the Japanese yen during trading on Friday, but that’s not a huge surprise considering that it was Good Friday and the lot of bankers would have been away. The ¥145 level of course is crucial, as it is a large come around, psychologically significant number, but beyond their I think there is support all the way down to the ¥144 level. This is a marketplace that does look well supported, so I do not expect to break down. In fact, I would be more than willing to buy this market somewhere closer to ¥145, maybe even a little lower than that.
GBP/JPY Video 22.04.19
Looking at the longer-term chart you can see I have a bullish flag marked out that suggests a run to the ¥155 level. That being said it’s very likely that we are going to need to see some type of solution to the Brexit situation in order to break above the resistance barrier that I have marked by the blue box at the ¥150 level. I think this is a simple back and forth type of sawtooth pattern that we are forming out over the last couple weeks, and I do fully anticipate that it will remain the same.
Looking at the chart, if we broke down below the ¥144 level, then we could go looking towards the ¥142.50 level and eventually the ¥140 level. It would also completely negate the bullish flag and have the market take on a totally different feel. As things stand right now though, I still like buying the dips.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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