The British pound surged during the week, surpassing the level of ¥ 135. At this point, the market begins to appear to be trying to close the previous gap, near the ¥ 137 level. The 61.8% Fibonacci retracement level will also offer some resistance. That said, the market has rebounded fairly well from a significant low around ¥ 130. On the upside, we could go up to ¥ 140, which is a large, round and psychologically significant figure. If we can break above, the market will turn to the 100% Fibonacci retracement level which is around ¥ 145.
GBP / JPY Video 13.04.20
That being said, this pair will evolve quite drastically due to the headlines coming out this weekend, I suppose. At this point, the market is very likely to see a type of security that is “risk activated” or “risk deactivated”. Right now, the market is just continuing to consolidate into a huge range, so if we get some type of good news, the market should keep growing. Otherwise, the market could revise the level of ¥ 130 below, which should offer some support. Ultimately, it’s a market that continues to struggle, but at the moment, it seems that it is simply evolving on fear and greed, not necessarily something to do with fundamental analysis. At this point, it looks like we are ready to open up more than anything outside.