GBP/JPY - Sideways churn continues even as May embarks on UK tour

The GBP/JPY cross shows little anxiety or excitement even as UK PM Theresa May embarks on a UK tour to galvanize Brexit support.

The pair has been restricted largely to a narrow range of 140.60-138.00 since last few days. The range remains intact in Asia.

Is the bubble in Pound about to pop?

Cable defended 1.21 levels during the recent bout of weakness, thus leading to the higher lows formation on the weekly chart. That seems to have triggered speculation of a major trend reversal in the pond.

However, it is too early to call a bottom as the significant majority in the market believes pulling of the Article 50 trigger would end up popping the bubble in the GBP. Moreover, the negotiation process brings with it a lot of uncertainty and risk of Hard Brexit and that could weigh over the British Pound.

GBP/JPY Technical Levels

A break above 140.30 (resistance offered by Dec 15 high and Jan 27 high) would expose 140.76 (50-DMA) and 141.00 (zero levels). On the other hand, a breakdown of support at 138.56 (Mar 16 low) could yield a sell-off to 138.00 (zero figure) and 137.64 (200-DMA).

15M Bearish Oversold High
1H Bearish Oversold Low
4H Bearish Neutral Low
1D Bearish Oversold Low
1W Bullish Neutral Low


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.