The British pound has pulled back during the trading session on Thursday as we continue to see the ¥140 level because issues for traders. Ultimately, this is a market that is heavily influenced by risk appetite, but of course the Brexit situation which continues to be a major problem. With this, it is very likely that we will continue to see a lot of back and forth in this pair as the Brexit headlines continue to be played out between politicians via the media. As children continue to bicker, this throws the markets into a bit of a tizzy.
GBP/JPY Video 27.11.20
Nonetheless, the 50 day EMA near the ¥137.50 level should offer support just as the ¥140 level would be massive resistance. In this general vicinity, I think the market will just go back and forth. With this being the case, it is likely that the range bound type of trading is something that you will see until we get Brexit sorted. The Brexit being solved and concluded should send the British pound higher, I think it is obvious that the ¥140 level is going to continue to hold the market down, but once we get Brexit done, then the market breaks out. The meantime though, it is going to be susceptible to pullbacks, so keep that in mind.
This pair is also sensitive to risk appetite as well, meaning well beyond the Brexit situation. At this point, the market has been in an uptrend for a couple of months now, as we continue to see a lot of hope flow into the market. That being said, it is very likely that the markets will continue to move on the latest nonsense that comes out of politicians mouths.
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This article was originally posted on FX Empire