The British pound pulled back significantly against the Japanese yen during trading on Monday to kick off the week, but we are starting to approach a significant support region. That region extends all the way down to the ¥139 level so I will be looking for an opportunity to go long on some type of bounce. At this point, the market has been drifting lower and down into the support zone, and I think it’s only a matter of time before buyers come back in.
GBP/JPY Video 04.02.20
Looking at the chart, as well as the overall situation during the trading session, it does look as if the market is paying more attention to Boris Johnson than anything else right now. He suggested that the deal was going to be comprehensive or he was willing to go back to the WTO agreement with the European Union. He wants comprehensive like Canada got, or nothing. All things being equal though, this is probably going to offer a bit of buying opportunity. I will wait for a bounce in order to get involved though, instead of trying to anticipate a move. I will be especially interested in the ¥140 level. That being said, pay attention to my analysis here at FX Empire, as I can let you know when I see the opportunity. However, if we were to break down below the ¥139 level, then it’s likely that the market goes looking towards the 200 day EMA underneath, which is currently sitting near the ¥137 region.
Please let us know what you think in the comments below