The British pound has bounced slightly during the trading session on Tuesday, as the market has found a bit of support at the 141.50 level, but then turned around slightly as we are at the top of the previous bullish flag. Now that we are there, it’s likely that the market will try to rally and reach towards the ¥145 level next, and perhaps even further. Having said that though, the market has been slammed due to the concerns about a “hard Brexit”, and as a result the market is still erratic.
GBP/JPY Video 26.12.19
Beyond that, the market may have seen a lot of profit collecting due to the fact that the British pound had run up so high. Having said all that though, even with the massive selloff over the last couple of sessions, we are still very much in an uptrend and now the 50 day EMA is starting to come into play. With that being the case, the market is likely to continue to see a lot of bullish and erratic behavior, and over the next couple of days it’s likely that thin markets could push this market around quite drastically. Remember, the GBP/JPY pair has been very volatile at times anyway, so with a lack of volume we could continue to see’s plastic moves. I do think that we go higher though, with the ¥140 level and the 50 day EMA both offering quite a bit of support. Underneath if the market was to break down below the ¥139 level, then we could see the market fall apart but until then I think that there is still an opportunity to rally.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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