The British pound went back and forth during the trading session on Friday in the week, in what would have certainly been light volume. Ultimately, the market is trying to break major resistance, and over the last couple of weeks we have seen a lot of work done. The Tories look likely to you when a major advantage in Parliament, so therefore the idea of Brexit happening suddenly becomes much more viable. Ultimately, this is a market that could break out and go looking towards the ¥145 level, and then eventually the 100% Fibonacci retracement level which is closer to the ¥149 level.
GBP/JPY Video 02.12.19
Looking at this chart, it’s likely that we continue to see a lot of noise but it will be moving based upon the headlines involving Brexit more than anything else. However, the US/China trade situation will continue to put a bit of volatility in the market as well, so as things look better it’s likely that the Japanese yen loses a bit of favor, and the market continues to go much higher. The most recent impulsive candlestick was from Wednesday, and it was very strong. The fact that it had been so bullish suggest that there are a lot of fresh buyers in the market so it’s probably only a matter of time before we break higher. Buying dips on short-term charts continues to work, and as a result it’s likely that the market will continue to be headline driven more than anything else, so keep an eye on your newsfeed.
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This article was originally posted on FX Empire
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