The 142.000 area is a must-hold level for buyers.
But given what we’ve already seen from other yen pairs, a breakdown seems imminent.
Just remember that there are two upcoming Fundamental factors to consider and they will trigger an increase in volatility:
1. Fundamental event in the form of this Thursday’s BOE decision and statement.
2. We also have Brexit on Friday.
Technically:
Look at the 141.000 area, twice in recent weeks as one that sellers need to break in order to send the GBPJPY lower.
Notice how 141.000 served as resistance in October and November.
Following the November 27th close above 141.000, the area started to attract buyers, including earlier this month.
So, GBPJPY sellers need to clear channel support at 142.000, but they also need to take out that 141.00 horizontal level.
For targets, keep an eye on 141.000 as well as 139.200 and 135.300.
Key resistance for this week remains that 144.400 region.
But given what we’ve already seen from other yen pairs, a breakdown seems imminent.
Just remember that there are two upcoming Fundamental factors to consider and they will trigger an increase in volatility:
1. Fundamental event in the form of this Thursday’s BOE decision and statement.
2. We also have Brexit on Friday.
Technically:
Look at the 141.000 area, twice in recent weeks as one that sellers need to break in order to send the GBPJPY lower.
Notice how 141.000 served as resistance in October and November.
Following the November 27th close above 141.000, the area started to attract buyers, including earlier this month.
So, GBPJPY sellers need to clear channel support at 142.000, but they also need to take out that 141.00 horizontal level.
For targets, keep an eye on 141.000 as well as 139.200 and 135.300.
Key resistance for this week remains that 144.400 region.