If you read our last report about the GBP/JPY you are a winner, since in that report we advised you to sell the pair around 143.00 after seeing the pin bar candle in the daily time frame. If you sold it we can judge that you won more than 500 pips till now.
The GBP/JPY currency pair has opened this week with a big gap and has skidded to 136.49 after the British PM Theresa May talked about a potentially difficult Brexit. We are waiting for her speech today to know her plans about approaching the Brexit - the speech is expected to provide clarity ahead of triggering Article 50 in two months’ time.
Technically the pair broke the SMA50 last week and is still trading below it. The pair broke the key support area too at 138.00-90 and closed below it yesterday, so we expect that it will decline further down to 132.00. The pair is trading now around 50% Fibonacci and may decline to 61.8% in the next few days but it depends on May’s speech today that we mentioned.
The MACD indicator gave us a sell signal and it’s a good one, but the RSI is at 5 value which means the prices may make a small correction wave to retest the broken bottom at 138.90.
The Next Few Days
We can sell the pair now at 137.60 and keep our first target at 136.00 and the second one at 134.00, but if it breaks the resistance area and trades above it, we can buy the GBP/JPY to 141.40.
We have to be careful from the upcoming hot news like May’s speech and CPI figures today.
