Since November, the Dragon has been flying above the Daily 200 EMA. After a months long period of consolidation between 137.000 and 140.000, traders may find some action that they have been longing for in regards to the pair. At the closing on Friday, December 11th, 2020, the pair has closed within its consolidation range, as well as posted a low at the daily Fibonacci retracement level of 618.
Should GBPJPY continue to rise, it may target 142.000 for the bulls. However, the major key level that will need to be broken is the one at 140.000. The battle between the bears at 137.000 and the bulls at 140.000 may be reaching their conclusion, with the following week governing the future movement of the pair.
The recent plunge in the price comes as the British Pound gets hammered with news of a “no deal Brexit” being more likely. While market sentiments regarding the pound acts in such a manner, the situation is highly volatile and may change in an instant. Regardless, traders should be wary when trading the pair. Aggressive trades above or below each key level is likely to be seen.