GBP/JPY arrives at critical juncture as Brexit vote looms
The GBP/JPY has staged an impressive rally off its 2019 low at 131.95 which it hit on the January 2. Ahead of the Brexit vote, it has now reached the pivotal technical area between 139.35 and 140.00. This range was the last support prior to the latest breakdown. Once support, this region could turn into resistance going forward. But if the bulls reclaim this resistance zone then rates could push further higher in the short-term, with the next potential resistance coming in at 141.60.
Meanwhile, the next support levels come in at 137.65 and 136.80 respectively. If the latter breaks, say, on the back of the Brexit vote on Tuesday, then we wouldn’t rule out a potential drop towards the next psychological level around 130.00. In any case, traders need to be extra vigilant to the prospects of price spikes, flash crashes, and indeed flash melt ups, and take appropriate measures to minimise these risks. Good traders are, above all, good risk managers.
You’re invited to a special Brexit webinar
On Tuesday, January 15 the UK Parliament will vote on Prime Minister Theresa May’s Brexit deal. Political analysts are predicting a rejection in the Commons, which could lead to several different outcomes.
Join our market analyst Fawad Razaqzada on the day of the vote to look at how the vote could unfold and what the different scenarios could mean for the markets.
- Date: Tuesday, January 15, 2019
- Time: 8:00 AM ET / 1300 GMT