FOREX Chart Of The Day: GBPJPY- Key Levels To Watch
Do you trade #GBPJPY?
In this video we break down the #forex pair and highlight the key levels to watch.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
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In this video, we’re going to take a look at GBP/JPY. We’re going to look at the potential for some further downside. But going to identify the key support and resistance levels that we want to be watching out for on this market.
Now, if we go to that weekly time frame, the Pound was very weak last week, changing simplicity against most currency pairs. I’m looking for the continuation of this move to the downside. However, the price is currently at an area of support around this 135.50-135.60 area. We can see that the market has found some resistance in the past. Even here, we found it as resistance and support.
What I identify here is the fact that we have had a large move to the downside. The market is now at support. Typically we would see a little bit of a pullback before seeing a continuation move when we see moves like this.
Now obviously, this move through here was the coronavirus, so there were fundamentals that would drive in the market to the downside. This time, we have kind of Brexit negotiations, breaking down, lots of talk about Boris Johnson, and the deal with Brussels starting to break down. So, what we’re seeing here is the fact that the Pound is taking a hit because of that.
Now going into that daily time frame, due to the technicals match up with that sort of outlook that the Pound is going to continue to be bearish. We had this nice uptrend through here. The market was making higher highs and higher lows. Now we’ve broken through those lows through here. There was even a little bit of support found there.
The way I see this market at the moment is because we’re getting this consolidation in here, we’ve got a few things that are going to happen. We’re even going to see the market pullback and retest an area of structure, which I think will be around about this 137.70. If I pop a line through here, this is where I think the market will want to come and retest for some downside.
If we’re going to the four-hour time frame, there’s a couple of interesting things going on at the moment on the four-hour. This is the zone that I’m looking at through here. Even this kind of area through there, where the market could pull back into from that daily time frame. However, the market is consolidating in this area.
There’s a couple of different options we can look at. We can either look at the fact that if the market does find a double bottom here, it breaks through and pushes to the upside. We’re going to look for the trend to continue in the four-hour time frame or we’re gonna wait for a break out of this zone to the downside.
What we may see because the Pound is so weak, it’s not going to give us that pullback that we’re looking for. It may just remain in this area until it breaks out to the downside. A couple of different options here on GBP/JPY. Either way for the daily retracement into this area here around about that 137.60, or we’re gonna wait for a break out of the lows of this consolidation area, and this key weekly supporting zone. Pound yen key levels to watch 135.50 to the downside, 137.60 on the pullback.
Thanks for watching this video update, and I’ll catch you in the next one.
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