GBP/JPY collapses at 141.00, bulls avoiding the knife


Currently, GBP/JPY is trading at 139.00, down -1.43% or -201 pips on the day, having posted a daily high at 141.00 and fresh low at 138.96.

May's conference, don't expect another fiasco

Bloomberg reports, "U.K. Prime Minister Theresa May will set out her vision for Brexit and her hopes for creating a “truly global Britain” in a speech on Tuesday, her spokeswoman said.The address, planned since December, will attempt to answer calls from businesses and politicians for more detail on her goals as she prepares to trigger the formal process for leaving the European Union by the end of March."

GBP/JPY Technical Level

Seasonal trends tend to affect not only traditional businesses but also financial markets; currency trading is not the exception. After, five-consecutive trading weeks on long-only mode, the pound is losing control and evidence is all over the charts to expect further losses. To the upside, on the medium-term view, it was the break below the 200 SMA (green color), then a fragile 50 SMA (blue color) and finally the cross has plenty room to trade lower towards the critical support zones; 137.50 and 135.00. To invalidate this, prices must retake 140.00 and continue towards the immediate resistance on the 141.80 handle.  

gbpjpy

On the long-term view, a deeper pullback seems imminent, the next logical support to expect renewed interest is seen around 136.00 (short-term 50.0% Fib), then its last resort could be found at 133.80 (short-term 38.2% Fib). Once PM May's Brexit agenda is cleared, risk takers may pull the cross back to current levels, then target the resistance zone around 145.00/50 where a bullish consolidation has the potential to push the exchange rate close to 148.50 (Dec. 2016 high)

gbpjpy

Who is still selling Sterling? 

 

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