Optimism and fall when there are times of concern. I believe at this point the Brexit of course is another major influence on this market, and with Parliament debating the Brexit deal currently, there will be headlines out there that will throw this market around in both directions. I believe that we probably have more downward pressure than anything else, so I look at rallies as opportunities to start shorting this market that most certainly will be sensitive to headlines coming out. The random rumor on Twitter continues to be a major issue in this pair, as algorithmic machines trade based upon the latest headlines. I think that the ¥145 level above is significant resistance, so I think we rally from here we should see sellers coming into the market based upon the technical analysis.
GBP/JPY Video 07.12.18
If we break down below the ¥143 level, then we could go down to the ¥140 level next. There is a lot of volatility ahead, and with the jobs number coming out Friday morning, it’s likely that we will see a lot of movement as well. I still believe in shorting this market, so rallies will be faded at the first signs of exhaustion. The downward trend line above I believe is going to keep this market very negative, at least until we get some type of deal when it comes to the Brexit, so at that point I expect we would see a massive amount of momentum to the upside.
This article was originally posted on FX Empire
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