The British pound swirled back and forth during Tuesday’s trading session as we continue to try to decide whether or not there is good or bad news ahead of Brexit, which seems like a moving target to say the least. At the end of the day, it’s a market that I think always wants to go higher, but quite frankly, it’s the last Tweet or comment to come out that will cause the next move. On the upside, the ¥ 140 level will be a target, but if we can break above that on a daily close then it is likely that we will continue to move higher. However, that would almost certainly have to do with resolving Brexit, something I’m not holding my breath for in the short term. For this reason, I think the pair continues to be very volatile in general.
GBP / JPY Video 16.12.20
The 50-day EMA should offer some support below, and most certainly the 200-day EMA will too. Having said that, I am looking for short term withdrawals in order to take advantage of the value of the pound, but I think at this point you need to be relatively quick to take profit, and therefore you would be fine. in your right to just walk away from this market because it is so volatile and nervous. While I can argue for the strengthening of the Japanese Yen against the British Pound, the reality is that it is almost impossible to sell this market.
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