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GBPJPY Bullish Pressure Intensifies Below 162.50

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3,160 pips. That was the total damage inflicted by the fourteen-month head and shoulders pattern that confirmed late last year on GBPJPY. The only thing more impressive than the size of the move was the mere four months it took to play out.

But since hitting a multi-year low in April, GBPJPY has begun showing signs of life. While I’m by no means ready to turn long-term bullish on the yen cross, the consistent pressure that has been building below 162.50 is intriguing.

Since late March, this level has capped four advances, including today’s session (thus far). And the way price action has unfolded this month leads me to believe that a daily close above 162.50 could extend the relief rally toward 165.60 and possibly 168.00.

There is, however, a higher degree of uncertainty surrounding the British pound, especially as we move into the month of June. So be sure to take this into account when managing any GBP exposure.

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GBPJPY resistance and possible higher low

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9 comments
Adenani says

Thank you very much, Master Justin…

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Leonel says

When this one keeps going is great, but it retraces, it can wipe out your acct
What is the best way to trade this baby, is 100 pips stop pk?

Reply
    Justin Bennett says

    Leonel, if your entire trading account is in jeopardy from one trade, you’re risking far too much.

    Reply
Josephine says

Thank you Justin for the analysis.

Reply
    Justin Bennett says

    You’re very welcome, Josephine.

    Reply
peter says

Two Very good analysis but you could also have addressed the sales tax hike delay which is a key factor in Yen strength.

Reply
    Justin Bennett says

    Peter, I rely solely on the technicals to form trade ideas.

    Reply
peter says

Thanks for your reply Justin. You mentioned the possibility of Brexit re GBP in June so that’s why I thought you also looked at factors affecting the Yen. Cheers!

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sundar says

This pair is acting crazy just because one poll suggests Brexit….need another poll soon. Whew it is a blood bath . What is happening to British people ? Why they want to ruin their economy by Brexit ? 750 pips blood bath and still continuing.

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