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Market Update: Momentum shifting on the GBPJPY?

jeffriess
November 20, 2020
by Joseph Jeffriess, Market Analyst

Hi traders, today we look at the GBPJPY daily chart as support has started to form from a previous resistance point.

Today we have seen a small shift away from safe-havens back to risk assets. FX and stocks have been mainly higher throughout today’s Asian and European sessions after U.S. stocks finished the session higher yesterday.

The main point of interest is seeing today’s bar gain buyer momentum from previous resistance level 137.50. With yesterday’s bar combined with today’s buying we now have two points of new buyer interest at this level starting to set up new support. Yesterday’s bar also set a failed low, which is also a new HL. What we’re looking for idea wide from this price action is a possible new starting point for a continuation. Buyers face short term resistance at the 138.00 area. We would like to see this level beaten with a hold of 137.50 to show buyers do hold momentum. If buyers can continue to push the price higher, 139.66 this could be the first real higher target.

As with all stories, there are two sides to this one. If price fails to hold today and closes below 137.50 we would be looking for the current leg lower continue with a possibility of sellers taking price back to the main trendline.

We will see if buyer strength can holdout today.

GBPJPY D1

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