Freefall in GBP/JPY – Safe Haven Appeal & Brexit Uncertainty Play

It’s all about the Japanese yen on today’s canvas, as the trade war sentiments continue to dominate the market. United States President Donald Trump seems to be telling one thing and doing another as the shadow of a US-China trade dispute rises over the world.

I hope you all know about the prolonged trade war between the US and China, causing a haven appeal and making Japanese Yen stronger. A day before, US President Donald Trump eased the aggressive sentiment by saying that the trade deal is still on the table. Moreover, they are also looking delay trade tariffs on Auto companies by up to six months.

On the other hand, Sterling weakened over Brexit sentiments. Theresa May once again meets colleagues attempting to remove her on Thursday, as her battle to stick to power and get her Brexit deal through Parliament raises.

GBP/JPY – Technical Outlook

After a free fall of GBP/JPY from 145 to 140. 650 level, the market seems to stabilize. On the daily chart, GBP/JPY has entered the oversold zone.
Support Resistance
140.09 141.53
139.43 142.31
137.98 143.76
Key Trading Level: 140.87

The closing of a recent candle can determine if there’s going to be a bullish reversal or a bearish trend continuation. GBP/JPY is facing immediate support around the psychological level of 140, while resistance is around 141.900 and 143.850.

GBP/JPY – Trade Idea

Fellas, stay bearish below 140.860 with a take profit around 140.010 and 139.610.

Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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