GBP/JPY: STERLING YEN HEADING FOR LOWS LAST SEEN IN 2016!!!!
Good afternoon Traders and welcome back to EverythingFX on the 9th of August 2019.
The Great British Pound is currently trading at 127.893 against the Japanese Yen during today's London Session.
As mentioned our Technical Floor on EverythingFX we have been riding this down since 135.000, which has put our members with a healthy 700 PIP bag from the highs.
As mentioned in the title we are heading towards lows last printed in 2016 in and around 125.000 which played as a great level support and inevitably will be our new support going forward providing a 280 PIP free fall to the lows and I wouldn't be surprised if we surpass those lows going forward.
Looking at this pair from a technical perspective, we have been literally been breaking ever support level known to this pair. We recently had a minor retracement to re-test 130.000 where we had multiple wick rejections showing a slow down in momentum as illustrated in the screenshot above. Upon a break of our weekly support of 127.500, one could look for a re-test on a lower time for a potential short entry providing us with a great risk to reward to target 125.000 providing us with an addition 250 pips to the downside.
Fundamentally this pair has been battered of late. We have seen the Yen gaining strength as mentioned in our market news section and we had GBP GDP out today QoQ at -0.2% evidently showing us the economy in a whole is slowing down which will place eyes on the BOE to potentially adjust the Policy to accommodate this slowdown! Do stay tuned to our market news section, morning podcasts as well as our social media accounts for further updates!