The British pound initially pulled back during the trading session on Monday to reach down towards the ¥150 level. That being said, the market looks very likely to continue to see buyers on these dips, as it looks like we are trying to build some type of support in this general vicinity, it is obvious that we are in an uptrend and now it looks like we are trying to continue the overall momentum. Furthermore, when you look at the Friday candlestick, it is obvious that there were a lot of buyers out there. Because of this, we should see a little bit of continuation and the fact that the 50 day EMA underneath should continue to cause a bit of support as well, as it is such a highly followed technical indicator.
GBP/JPY Video 20.04.21
All things been equal, it looks like we are trying to build up some type of support that we can continue the overall uptrend, as more of a “risk on” type of attitude takes over the markets. With that being the case, I think that it is going to be almost impossible to short this pair anytime soon, and even if we broke down below the 50 day EMA, I believe that there would be plenty of support near the ¥145 level to keep this market afloat as well. All things been equal, this is a market that I think continues to see buying pressure, and if the USD/JPY pair can hold some sense of stability, that will also put downward pressure on the yen as well, keeping this market afloat as well.
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