GBP/JPY: Sterling Yen gearing up for a new leg!
Good Afternoon Traders, Welcome back to EverythingFX
The Great British Pound is currently trading at 140.301 against the Japanese Yen during today's London session!
For several weeks the Pound has been trading in a range, on this pair, in particular, it has been a 200 pip range from high to low, Looking on a weekly timeframe We saw a nice bearish closure last week engulfing the prior 4 trading weeks essentially giving us that shift in momentum off of the highs!
Dropping down to the daily timeframe, we can see the market sold itself into the bottom end of the range at 139.400 before gapping up on the open Sunday night and giving us one further push into the highs. If we drop down to a 4-hour I would like to see a closure below 140.000 to give us further confirmation however there remains a good risk to reward to the downside from CMP.
Fundamentally I would just say Brexit and the Trade deal continue to steal centre stage for the currency market in general! Towards the end of last week, we saw a few comments suggesting China and the US were close to a Phase 1 deal however nothing is certain yet! With the UK Elections fast approaching all parties have been campaigning but nothing really to do with Brexit so stay tuned to the market news section, twitter feed and social media accounts for further updates.