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by Darius Anucauskas

GBP/JPY – Technical Outlook

GBP/JPY is currently experiencing a downslide, due to the weakening of the British Pound and the tensions on the geopolitical arena, where investors are seeing interest in the yen as a safe-haven currency. On the bigger picture, the pair continues to trade below the long-term upwards moving trendline, drawn from the lows of the 17th of April last year.

For now, the trend is still to the downside, but along the way lower, GBP/JPY could see some moments of correction back to the upside, before it moves back down again. A break below yesterday’s lows at around 144.35 could be a good entry point for more bulls to join in and drive the pair towards the 143.15 level, marked near the lowest point in May. If that level will not be able to withhold the rate from dropping further, this opens the doors for a potential move towards the 141.20 zone, which was the lowest point in September last year. Certainly, GBP/JPY could recover some of its lost grounds and test the 145.30 area or even the 146.10 zone again, this time from underneath, and then move back down towards the previously mentioned levels.

Alternatively, a good strong break of the 146.10 level could spike the interest of some bulls, who could interpret this move as a positive sign and drive the pair to the 147.05 level and then to the 148.10 mark. The last one is not far from the aforementioned upwards moving trendline, which could end up being tested again.

2018.06.20 GBPJPY 240 Logo

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