The British pound has been somewhat choppy during the trading session against the Japanese yen on Tuesday as markets continue to worry about a multitude of various issues. With that being the case, the market will of course continue to make a lot of move is based upon the latest headline, not the least of which would be anything involving the coronavirus. However, the British pound is also going through the growing pains of the United Kingdom leaving the European Union, so there are plenty of problems over there just waiting to cause the market to move in one direction or the other.
GBP/JPY Video 04.03.20
If the market was to break above the Monday candle, then we can make an argument to reach towards the ¥140 level, and then possibly even the 50 day EMA. Alternately, if the market was to break down below the lows of the Monday session, then it’s very likely that the British pound will continue to go lower, perhaps reaching down to the ¥135 level next. Remember, this pair is highly sensitive to risk appetite and that seems to be all over the place right now. Algorithms continue to throw markets in both directions, and therefore this pair will probably move right along with the rest of the markets. The stock markets continue to be very erratic, and therefore I would expect the same behavior over here. Be cautious, but those are a couple of levels that you should be paying attention to before placing the trade.