A week ago GBP/JPY traded at levels just prior to the flash crash move earlier this year. Current set up is getting interesting.
Source, MetaTrader 5
Let’s see what happens next.
The week ahead is providing a lot of UK economic stats.
Trading week starts with Japanese GDP figures.
Currently, the GBP/JPY is trading at 137.86, +110 pips from last week.
Source, MetaTrader 5
We are trading at the 23.6 Fibonacci level which is a big level to watch.
RSI is above the 50 levels which could potentially be a reversal signal on the H4 chart.
Source, MetaTrader 5
The above; RSI at 50 levels, Fibonacci support as well as the fact we are trading at the 200 day average is setting up for a potentially big reversal move.
Bear in mind that if geopolitical tensions escalate further (trade dispute, Iran, Brexit…), the JPY could quickly strengthen against the GBP.
We are watching the GBP/JPY closely for potentially interesting plays and will keep you updated.
