Upside risks dominated the British Pound versus the Japanese Yen during the past week. The currency pair appreciated about 2.89% during last week’s trading session.
A breakout occurred through the upper boundary of a dominant descending channel at 147.00 at the end of Wednesday’s trading session.
Given that a breakout had occurred, it is likely that the GBP/JPY exchange rate continues to gain strength.
However, it is expected that the currency exchange rate makes a brief retracement down towards a support level at 144.03 in the short-term.
A breakout occurred through the upper boundary of a dominant descending channel at 147.00 at the end of Wednesday’s trading session.
Given that a breakout had occurred, it is likely that the GBP/JPY exchange rate continues to gain strength.
However, it is expected that the currency exchange rate makes a brief retracement down towards a support level at 144.03 in the short-term.
Note
The British Pound has continued to gain strength against the Japanese Yen. The currency pair appreciated about 1.38% in values during the previous week trading session.
The 50– hour simple moving average and the weekly pivot point at 146.97 is currently providing support for the exchange rate.
If this support cluster holds, bulls could drive the currency exchange rate towards the upper boundary of an ascending channel pattern at 151.08 during the following trading session,
On the other hand, if the pair passes the cluster, a decline towards the 100-hour SMA at 145.11 could be expected in the short-term.
Note
The Pound Sterling has appreciated about 500 base points against the Japanese Yen during the past one week. The currency pair was supported up by the 200-hour simple moving average.
Technical indicators flash bullish signals on both the 4(H), daily and weekly time frames chart. Therefore, the exchange rate could end this week’s trading sessions with bullish momentum.
However, traders need to be aware of a significant resistance level at 148.58. If the pair breaks the level, bullish traders could push the rate higher during the following trading sessions.
Note
The British Pound has maintained a medium-term ascending channel pattern against the Japanese Yen since the beginning of January. This medium-term channel has guided the currency pair near a November high level at 148.58 during this time period.
The exchange rate was trading near the bottom border of the channel pattern during the morning hours of today’s trading session and could be set for a breakout.
If this breakout occurs, bearish traders could push the currency exchange rate towards a psychological level at 144.00.
However, traders are advised to be careful before taking a trade because of the political event in the United Kingdom.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.