GBP/JPY: Sterling Yen piercing through 135.000 and rejecting!
Good afternoon Traders and welcome back to a brand new week here at EverythingFX.
The Great British Pound is currently trading at 133.716 against the Japanese Yen During today's London session.
Looking at the higher timeframe we saw a nice push up from a level of support of 127.500 which saw us riding straight into 135.000 psychological handle which evidently has played as an important level before on several occasions. On the Daily timeframe, we saw a double Doji, in and around a level of resistance, indicating to us there was a slowdown which was identified for our Technical Floor members who are currently floating 160 PIPs in profit.
If we take a look at the 4-hour timeframe we successfully pierced with 3 drives into the high before rolling over. Upon market open, we had a gap up in price, a retest of our liquidity zone marked up in the screenshot above in and around 134.500 where we saw that rejection at the start of the London session when liquidy picked up. I am however expecting a pop up in price again, before having that rollover!
Upon a re-test of that minor level as highlighted above, I do see a rollover in price all the way back down to the 130.000 psychological handle. Fundamentally we had Juncker from the EU commenting saying that a deal is reachable, yes that is a bit of light upon the Brexit scenario as a whole however that doesn't mean we have one yet! Personally, I think it was a good old buy the rumour, sell the fact that we are still nowhere near a deal. With Boris Johnson in the limelight now potentially being prosecuted for conflict of interest I do expect that to bring a negative swing to the pound. Stay tuned to our market news section, twitter feed and social media accounts for further updates.