Daily Price Action
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GBPJPY Plunges Below 135.50

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The Japanese yen is rocketing higher today.

Weeks ago, I heard rumblings from some traders that the yen was no longer a safe haven currency due to COVID-19’s impact on Japan.

I wasn’t one of those traders.

The way the USDJPY was acting at the end of February indicated that the yen was still very much a flight to safety currency.

Of course, USD weakness helped the pair along.

We even saw the risk-sensitive USDJPY confirm a massive false break on February 27th.

Since closing below that 109.80 level on the 27th, the USDJPY has lost more than 700 pips.

As for GBPJPY, the pair hasn’t suffered nearly as much given the pound’s strength relative to the US dollar.

But the yen is having its way with the pound regardless.

We see the same thing happening to the EURJPY below that 118.50 breakout level I wrote about on Friday and mentioned again in Saturday’s video.

If GBPJPY closes the day below that 135.50 level, I would expect it to begin serving as resistance going forward.

As for key support on the way down, keep a close eye on 130.70, followed by 126.70.

Notice how 130.70 served as a pivot for the GBPJPY between August and October of last year.

126.70 is, of course, the 2019 low.

On the other hand, if GBPJPY manages a close back above that 135.50 handle, it would keep the level intact as support a while longer.

Remember that I use New York close Forex charts so that each 24-hour daily session opens and closes at 5 pm EST.

Go here to get access to the same Forex charts I use.

All in all, though, I favor more losses across the yen pairs given recent trends and the introduction of a risk-off environment.

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GBPJPY daily time frame

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21 comments
Justin Bennett says

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khalid says

thank you so much..i love your analysis you are a champion trader without any doubt but sometimes your target price reached before it gives you chance to get into the trade..

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Mohsen says

Thanks so much
Regarding the gap and huge 1hour candle, it seems falling has enough power. I guess it can’t pullback to the 135.5 level and about 134.4 may be a good entry point.
Otherwise it falls directly to the next level and doesn’t allow enter opportunity as EurJpy.
Best wishes and hope healthy!

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    Justin Bennett says

    Anything can happen.

    Reply
Samuel says

Thanks for keeping me with the updates.i’m very grateful.

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    Justin Bennett says

    You’re welcome.

    Reply
Veronica says

What happens to the over 100 pips gap at the sunday open

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    Justin Bennett says

    I’m not sure what you mean. The currency market never closes, so any weekend gap you see is simply the difference between where your retail broker’s feed closed on Friday and where it picked up on Monday. The underlying market never closes.

    Reply
ali says

Thanks for the excellent analysis sir justin.

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    Justin Bennett says

    You’re welcome.

    Reply
khaled says

doctor trader.
thank u so much for what u provide.
ur analysis help me growing up.

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    Justin Bennett says

    You’re very welcome.

    Reply
Sifiso says

Hi there! Its amazing how the poundyen and euryen have been lagging the audjpy, usdjpy and the nzdjpy. Look carefully how the drops of these pairs align. It goes to show that the smart money has been buying the yen from all around the world. Traders need analysis tools that can track these subtle smart money tendencies to be profitable.

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    Justin Bennett says

    Analysis tools like a simple chart? That’s all I’ve needed over the years.

    Reply
      Sifiso says

      A simple chart showing price and time. And also the prowess for tracking smart money moves and tendencies utilizing price action analysis.

      Reply
ANIMA Mondal says

At what point shall be GBP Yen short

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    Justin Bennett says

    When the price action says so.

    Reply
Matt says

What is always indicator you using..

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    Justin Bennett says

    The primary indicator I use is price action. As a mean reversion tool. I use the 10 and 20 EMAs.

    Reply
Steve says

Hey justin what are your views on this pair going into the open today . Are u still waiting for the price to go down to 130 before looking to exit or should u be out already?

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