GBP/JPY: Sets its eyes on 150.000
The Great British Pound trading at 146.473 against the Japanese Yen during today's London session.
Looking at the weekly timeframe we can see a small spinning top candle with a wick to the upside as well as the downside where we came to retest our level of support at 145.000. Looking at the Daily timeframe there was little to no momentum yesterday as Monday's are relatively quiet.
Dropping down to a 4-hour timeframe we can see price is currently stalling in and around a daily key level of 146.500 where we could potentially get a push-up! I would, however, prefer a deeper retracement to get a third bounce of my ascending trendline. There are two scenarios with this pair, we could get a break to the upside which I would need to see a clean break of 146.950 with a potential re-test before going higher. Our next levels of resistance are our weekly at 147.500 as well as our monthly at 150.000 which would provide a good swing point for the pair which is 350 PIPs from current market price! What would invalidate this setup for me is a break of our ascending trendline which lines up with our level of support at 145.000.
Fundamentally, we have the UK Parliament which has taken a break now over the Easter Period however we received comments out of Germany saying that the UK wouldn't get an extension past the 31st of Oct this year. We had the Claimant Count coming in this morning at 28.3K with consensus at 20K where we have seen the pound react off of this data. Tomorrow we have Chinese GDP out of China which will be one to watch which will impact the Yen so do stay tuned to our Market News Section for updates.