The British pound initially fell during the trading session on Wednesday against the Japanese yen , but as you can see we continue to see bullish pressure and it now looks as if we are going to continue to try to bounce from this region. If that’s going to be the case, this market could go as high as ¥138 above where we see a lot of resistance. However, we had broken down below the 61.8% Fibonacci retracement level, and that of course is normally assigned that we are going to go much lower.
GBP/JPY Video 20.06.19
It’s not until we break above the ¥138 level on a daily close that I would be convinced of a larger move. However, that’s not to say that you can’t take advantage of the short-term bounce, not only from the sell side, but also from the long side as well. I think that if you are nimble enough you could probably do both, but only if you are short-term incline. This marketplace continues to show a lot of noise, but I think if you are going to take this buy signal, you should probably do so with half of a position. However, I would become much more aggressive to the downside on signs of exhaustion as we are most obviously in a downtrend. That being said though, we are at extreme lows so the “easy money” has been made already. However, there are still trades to be made at this point.
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This article was originally posted on FX Empire
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