Yesterday, GBP/JPY got flushed down the drain and dropped around 280 pips since the daily candle started forming. One of the main triggers for that were yesterday’s uncertainties around Brexit. GBP/JPY has broken its long-term running upwards trendline, that started in October 2016.
Looking at the 4h chart, the potential outcome for today could be that we see a bit of retracement back to the upside, maybe towards the 148 area for a quick test from underneath. If we start seeing a move back towards the 146.450 level, then the potential is then more to the downside and the pair could continue pushing lower today.
On the upside, a strong move back up to the 148.550 level and then back above the upwards moving trendline, could prove to be a sign that this pair does not want to give up its uptrend. But for that scenario we would need to get some certainty again on geopolitical arena around the Brexit issue.
Looking at the 4h chart, the potential outcome for today could be that we see a bit of retracement back to the upside, maybe towards the 148 area for a quick test from underneath. If we start seeing a move back towards the 146.450 level, then the potential is then more to the downside and the pair could continue pushing lower today.
On the upside, a strong move back up to the 148.550 level and then back above the upwards moving trendline, could prove to be a sign that this pair does not want to give up its uptrend. But for that scenario we would need to get some certainty again on geopolitical arena around the Brexit issue.