The British pound has fallen during the course of the week, reaching towards the ¥135 level. Ultimately, that is where the market has seen the ¥135 level offering a bit of support and resistance, so I think it is going to continue to be very choppy and noisy. Because of this, the market is going to continue to be very noisy due to the fact that the pair is so highly influenced by risk appetite, which of course people are all over the place with.
GBP/JPY Video 19.10.20
The most obvious influence will be the Brexit situation and all of the noise that continue to come from headlines. John that, the Japanese yen is considered to be a safety currency, so that of course is something to pay attention to as well. Ultimately, the ¥135 level is going to be very important, so above there you would have to think the buyers are still in control, but if we were to break down below the ¥135 level then it would take a decidedly negative turn.
At that point, we could be looking at a move to the ¥133 level, and then possibly the ¥130 level. On the other hand, if we break to the upside it is likely that the market goes looking towards the ¥138 level, followed by the ¥140 level. With this, I think you are looking at a very choppy and sideways market as we need to find some type of catalyst that traders can sink their teeth into to put money to work.
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