The GBP/JPY pair flashing green as the currency pair soared from multi-day lows below the 129.260 as the Brexit uncertainty and also BOE’s willingness to act weighed on the pair. Whereas, the slowdown in the UK’s coronavirus (COVID-19) cases helping the currency pair to erase its early-day losses.
The GBP/JPY recovered from the earlier losses, which they added in the downfall of GBP/JPY prices, was the increased tensions between US & China after the US Commerce Department announced to cut off Huawei from overseas chips manufacturers. The department showed concerns that the Chinese government was trying to spy by building backdoors into the network infrastructure. However, China denied such accusations and said that it would respond accordingly. This increased risk-appetite from the market is also driving bullish bias for the GBP/JPY pair.
< Technically, the GBP/JPY is heading north to trade below an immediate resistance level of 131.33. The level is important as the 50 periods EMA holds there, while the downward trendline may also extend resistance around 131.336. Conversely, the bullish crossover of 131.336 level may help drive the selling trend in the GBP/JPY pair today. Let’s place a sell limit at 131.
Entry Price: Sell Limit at 131.419
Take Profit 130.819
Stop Loss 131.919
Profit & Loss Per Standard Lot = -$460/ +$557.4
Profit & Loss Per Micro Lot = -$46/ +$55.7