The pound has rallied slightly against the Japanese yen as we approach the holidays. Ultimately, this is a pair that moves on a Brexit basis more than anything else, so that said, there will be occasional noise trading, as the headlines continue to swing. – comes on fish. Having said that, it looks like we are nearing the end of Brexit negotiations which should continue to push the pound higher. At this point we have broken through a major resistance barrier so it is probably only a matter of time before we continue to move up.
GBP / JPY Video 28.12.20
On the downside, I think the 50-day EMA continues to offer support, but really at this point I don’t think we’re getting any sort of major sell off unless of course the deal details on. Brexit did prove to be very negative for Britain. . Longer term we could most definitely get a significant pullback, but we’ll start to focus on actual economic data at this point more than anything else so you can argue that the market needs to ‘reset’ now that we have been going beyond the pound sterling driver for several years.
There is an area between the 50 and 200 day EMA indicators which should continue to offer significant support, but it begs the question how much longer these UK lockdowns can last before they start to have a negative effect. on the British. delivered?
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