Pound sterling first performed very well on Monday, well above the level of ¥ 134. However, we recently saw a lot of resistance above the ¥ 134 level, and it looks like we are going to see more. The pair is basically consolidating, struggling just below the 135 ¥ level, which is of course a psychologically significant figure, but we also have the Fibonacci retracement level at 50% just above this level and, in addition , we recently saw the 50-day EMA breaking below the 200-day EMA, all of which are negative. “data-reactid =” 12 “> The British pound initially performed very well on Monday, largely exceeding the level of ¥ 134. However, we have seen strong resistance above the level ¥ 134 recently, and it looks like we’re going to see more of the same. The pair is basically consolidating, struggling just below the 135 yen level which is of course a psychologically significant figure, but we also have the Fibonacci retracement at 50% level just above of this level and in addition, we recently saw the break in the 50-day EMA below the 200-day EMA, all of which are negative.
GBP / JPY Video 07.04.20
This does not necessarily mean that the market will collapse, but it clearly faces a lot of resistance. It should be noted that although stock markets around the world have climbed higher, this risk-sensitive currency pair has floundered a bit. For this reason, this leads me to believe that we are quite ready to burst. If this is to be the case, it is very likely that we will be going back and forth. That being said, the market may exceed the level of 135 ¥, which would be an extremely bullish sign and could send this market towards the level of 137 ¥.
On the downside, significant support is near the level of ¥ 132.50. A breakdown below would of course be an extremely negative sign and traders should start shorting this pair again. At this point, I think the market will move towards the ¥ 130 level, which has both structural and psychological importance.
article was originally published on FX Empire “data-reactid =” 17 “> This article was originally published on FX Empire