GBP/JPY Technical Analysis, Brexit Developments Influential - 11 April 2019

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Britain's economic growth slowed down, while the manufacturing sector rebounded. The results of the economic data as well as the market monitoring of the EU's approval to extend the date of Britain's exit from the European Union (EU) diverged from tomorrow's expectations for the EU's approval, but the there are timing differences; Britain wants a longer period and the EU wants to end it as soon as possible. Under these factors, the GBP/JPY pair stopped at 145.91 during yesterday's session before settling around 145.30 at the time of writing in anticipation of any developments.

So far, the May government has not been able to get parliamentary approval. EU leaders will meet with May this week to determine whether the period will be extended to June 30 or the EU rejects the extension and May returns to the last option to go out without a deal. For the third time in a row, the British House of Commons rejected the Brixet deal even after it was amended, adding to pressure on May and her government. British gross domestic product (GDP), unchanged as expected. In contrast, the Japanese TANKAN survey data confirm the Japanese economy's vulnerability to the US-China global trade war.

 

Losses of GBP did not stop. The Brexit's developments are many, successive and contradictory. It was normal for the pound to depreciate against other major currencies.

Technically: GBP/JPY correction and stability above 140.00 psychological resistance will support the continuation of the pair's upward trend and have tested all the levels we have anticipated in the previous analysis. Currently, the nearest resistance areas are 146.50, 147.80 and 150.00 respectively. On the downside, the pair's current support levels are currently 145.00, 144.20 and 143.00 respectively. I still prefer selling the pair at every rebound as the pound’s future remains uncertain as negotiations continue to for the Britain exit out of the European Union.

On the economic front: The pair is not looking for any important data from either the UK or Japan. The pair will be in a state of anticipation and waiting for the negotiations of Britain's exit from the European Union. It will also focus on the uptake of safe havens.

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Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
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