The British pound rallied a bit during the trading session on Friday, reaching towards the ¥143.50 level, and if we can break above there, we should continue to go much higher. After all, the market has been very bullish for some time and we have shaken out a lot of the “weak hands”, and therefore we can continue the uptrend now that the frothy overbought condition had been beaten back down. Looking at this chart, it looks as if the 50 day EMA has caused enough support to continue to push his market to the upside, and of course the ¥140 level is an area where we see a lot of interest as well, as it is a large, round, psychologically significant figure.
GBP/JPY Video 30.12.19
The bullish flag measured for a move towards the ¥150 level, and I do think we get there given enough time. That doesn’t mean that we get there overnight and therefore we probably need to look for short-term pullbacks in order to take advantage of what is an obvious strong uptrend. Beyond that, the GBP/JPY pair tends to be very sensitive to the overall risk appetite, so pay attention to worlds stock markets and things like that. At this point in time, I now consider the ¥140 level as a bit of a “floor” in the market. To the upside, I think that the ¥148 level will be massive resistance, but I also think that the ¥145 level will cause some resistance as well. That being said, I think that short-term pullbacks are buying opportunities, and that’s how I’m going to approach this market.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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