TechnoMeter

GBP/JPY Bounce to Resistance at Prior 2018 Low

This week started off with an increased slate of worry as financial markets gripped for the possibility of another summer of political volatility out of Europe. This helped to bring considerable strength into the Japanese Yen, helping pairs like EUR/JPY and GBP/JPY fall down to fresh 2018 lows.



In GBP/JPY, the selling was especially noticeable, as both a weak British Pound and a strong Japanese Yen contributed to a rather quick and heavy move. The British Pound has been weak for well-over a month now, with a bearish reversal starting in mid-April that hasn't yet reversed. We looked at short-side continuation last week when GBP/JPY had bounced up to a prior area of support around 147.03. That led into the quick bearish continuation move mentioned above, which soon took out both targets at 146.00 and 145.00; and prices continued to sell-off to as low as 143.20.

more...