The British pound initially tried to rally against the Japanese yen but then pulled back a bit to show signs of weakness as more of a “risk off” attitude has taken over the markets in general. That being said, the market does have a significant amount of support underneath, taking a look at the ¥140 level in particular as potential buying. There was a significant amount of support at that area previously, and it should also be noted that the area also features a bullish flag from the past, so at this point I do think that the buyers may return in that area. Having said that, the market has made a series a “lower highs in the short term, so that may give sellers a bit of the impetus to try and break this pair down.
GBP/JPY Video 10.02.20
There are a lot of concerns when it comes to Great Britain, but there should be a certain amount of relief due to the fact that the Brexit has finally happen. However, there is still a lot of questions out there as to how that turns out over the longer term, so it’s likely that traders will continue to look at this as an opportunity to find value given enough time as the UK has a much stronger position than they once did in relation to negotiating with the European Union. Keep in mind that this is a risk sensitive pair though, so pay attention to stock markets if they are very strong, then it’s likely that this pair goes higher based upon that risk appetite, but then it should be noted that the exact opposite is true as well.
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