GBP/JPY: Happy "Brexit Day", But where is Sterling Yen heading next??
Good afternoon Traders and welcome back to EverythingFX.
The Great British Pound is currently trading at 140.279 against the Japanese Yen during today's London session.
Surprise surprise, the 31st of Oct but still no Brexit deal, but where does that leave the Pound?
GBPJPY right now is being held up by a major level in and around 140.000 so it remains important that we get a break of this level before getting too excited!
Taking a look at the weekly timeframe, we saw a nice rejection from that level last week, however, till now it has been a fairly slow trading week as the market has been fairly range-bound! Taking a look at the daily timeframe we have seen multiple rejections from the upside as well as several days of indecision!
Dropping down to the 4-hour we saw the release of pressure today off the 140.500 regions as comments were released from China stating that they don't see the deal with the US lasting very long! That sparked a Risk off-tone for the morning session. As from a technical perspective, we need to sustain a closure below 140.000 before heading lower as shown in the screenshot above!
With regards to a political stance we now know that there will be a general election on the 12th of December so nothing changes, we still have not got a deal. The EU has now granted a "flextention" which in other words would be a flexible extension, in my opinion, brings further uncertainty. So we could see the good old buy the rumour sell the fact leading up the General election! Stay tuned to our Market news section, Twitter feed and social media accounts for further updates!