GBP/JPY: Hit 142.500 to the T, Where to next??
Good morning Traders and welcome back to EverythingFX.
GBP/JPY has hit 142.500 as expected in our previous article!
Looking at the Daily timeframe we can see our level of support of 144.850 has finally been broken after have tested it on 4 occasions. We have since sold ourselves straight into our next level of support of 142.500 as explained in our previous article.
Dropping down to a 4-hour we can see the price has since bounced off our support printed a nice bullish reversal where we could now start expecting further upside in the form of a retracement or a potential reversal. For now, what we can expect is a pullback to re-test our previous support now resistance. If that level is broken we could look for 145.000 going forward which is a good 220 PIPs from current price action. What would invalidate this setup would be a break below our support level of 142.500.
We remain cautious because of Trade tensions between China and the US which will affect the Yen as well as comments regarding Brexit, do stay tuned to our Market news section for updates.