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Freefall in GBP/JPY – Trump Triggers Safe Haven Appeal

Posted Friday, May 31, 2019 by
Arslan Butt • 1 min read

US President Donald Trump is aggressively hitting the real economy with tariffs and sanctions. This time, it’s Mexico. The US President Trump revealed the idea of imposing a 5% tariff on all imported goods from Mexico beginning June 10, a tax that would “gradually increase” till the stream of illegal immigrants over the border stopped.

Well, this has immensely impacted gold and Japanese yen. Both safe-haven assets have encountered massive demand in the wake of uncertainty spread by the United States.

Technical Outlook – Three Black Crows

The Japanese cross GBP/JPY has formed three black crows on the 4-hour chart. It signifies a strong bearish sentiment of traders. The pair has recently violated 137.990 resistance level due to haven demand.

Fellas, the pair may find immediate support around 136.800 along with resistance level of 137.850. Stochastics is oversold, or perhaps in a sharp selling more. It’s better to know to wait for the market to cool down before jumping in a sell trade.

The pair may find immediate support around 136.500 and 136.

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