GBP/JPY SPIKE CRASH 141 DOOR, MARKET AWAIT CARNEY

Photo credit- Mt4 Terminal

The GBP/JPY found some support from last week beatings when it lost its footing after the 140 was broken sending it to 138.500. Somehow the cable seems to be recovering fairly from the debacle. It’s now looking at taking control of 141 regions. 

Looking at the weekly chart, a failure to break 144.500 will give room for bears to drag it back to 138 and possible 136 regions. For now, the only reason one can give for the surprise bull spike at the London open today has to do with profit taking as bears try to reload and re-enter the market should the pair reach resistance level of 144.

Between now and March, we expect to see some consolidation from the GBP/JPY pair until we get a break of 148 to send the pair into a strong bull territory while a break below 136 can lead the pair back into 118 long term bearish outlook.

With more news coming from British parliament on Brexit, investors are awaiting the triggering of article 50 and the posturing of the Bank of England.

Bank of England's Carney will be speaking at 18:30 GMT today. Traders and investors will be looking at what the Bank has install to cushion the economy especially when the outlook for Briexit is looking more and more like a “hard exit”.

At the last press conference of Carney, he said Briexit will come with bumps on the road and a “hard exit” will surely breed uncertainty with the prediction of more companies moving their headquarters elsewhere.