Levels update for gbp/jpy

A quick update on some key levels for gbp/jpy following Monday’s move lower and in particular the 146.63 price region I mentioned in an earlier post. This level and price region has been tested on several occasions this week and provided a degree of support for the pair but now needs to be breached if Monday’s correction lower is to continue.

The hourly chart for the pair shows this in detail and also highlights the upside levels gbp/jpy will need to take out if last week’s trend higher is to resume. First resistance is at 147.03 followed by 147.41. However, a move through the latter will see the pair enter a deep area of congestion at the volume point of control where any progress is likely to be laboured and price action choppy.

And as always with a yen cross direction for the pair will also be dependent on overall market sentiment, which at best remains fragile given the lack of news and clarity on the Sino-US trade talks.

By Anna Coulling