GBP/JPY 147.500 Crucial Support
GBP/JPY: Since smashing through 150.000 we had a swift response in rejecting the multi-year highs at 152.900. We can currently see the price sitting at a critical level of 147.500. This region has previously trapped the price since the beginning of 2017. Having broken through A month ago it was only right that the level from a technical standpoint was retested. The Pound now sits at an interesting scenario with this pair in particular. If 147.500 was to be broken and closed below this could be the catalyst for the price to roll over and retest the 145.000 regions that have previously acted as a strong level of support. On Thursday the 12th of october The pair came under intense selling pressure after the Chief Negotiator for the Brexit Negotiations announced that there was a deadlock in proceedings. 147.500 will remain the zone of speculation as a bounce or break is now necessary for further price movement to be suggested. This may well have been a Knee-jerk reaction to market sentiment or the catalyst for a continued corrective structure.
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Studying the above daily chart, it becomes evident that an enormous Fibonacci move was fulfilled; the 127% extension level has been met with sheer accuracy and a pullback is now imminent. The Bank of England decided to keep rates untouched for now, however, we still saw the GBP price surge across the board.
The monthly shows signs of further upside, especially if the price remains around these zones by the end of September. A re-test of 147.70 may be on the cards now (June 2017 highs), which now acts as a strong support for the pair. This could be a future base/ higher swing low point for the pair, forming a new high in the near future. 152.50 is the next major level of resistance to take note of.