The British pound has pulled back a bit during the trading session on Thursday but has found a bit of support underneath at the 50 day EMA to continue the overall attitude of support. Ultimately, the market has been rallying over the longer term, but it also has been very choppy to say the least. Markets are awaiting the jobs figure coming out of the United States on Friday, so it would be difficult to imagine that there is going to be a major move without some type of headline being released.
GBP/JPY Video 07.02.20
The ¥140 level underneath continues to be massive support, as it is the middle of the flag that sent the market higher to begin with. Ultimately, I do believe that dips will be buying opportunities over the longer term, and it should be noted that part of the reason that the market has pulled back and was the nonsensical headline coming out of the European Union the previous session that they were going to rewrite the MiFID regulations to punish the City of London. Longer-term, it probably doesn’t matter as there is 11 months between now and the end of negotiating. Furthermore, the Japanese yen has been sold off significantly, as more risk has been taken by markets in general. Ultimately, I do believe that it’s only a matter of time before this market gets a significant rally based upon any type of dip.
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