If you've followed my analysis for GBPJPY I've been pretty for the long term for some time now, I was recommending sells near the 184-186 area down to 175 or lower if that were to break. Well, 175 did break and we saw 164s. Recently there was a massive surge back to 175 that I know many of you were able to successfully trade with my chart analysis.
175 has held it's ground very strongly - as expected, former support becomes new resistance in addition to the strength provided by the red line. I will remain on GBPJPY and recommend selling any rally that comes close to the strength (red line) If we manage to get a close below the blue line, the strength...Look for selling opportunities likely to hit the mid 150s in the coming weeks.
I've indicated potential price action for the upcoming week, we closed this week basically on the blue line - so it's hard to say exactly where we will start. Bias for now is recommended to sell any rally.
This move will also coincide with USDJPY falling below the key 116.00 technical level I have already written about.
Feel free to comment/like/follow.
For those that are unaware what imranafzalmughal4 is referring to, BREXIT or BRIXIT (British Exit or Britain Exiting) is a term that first appeared in 2012 regarding whether or not Great Britain would retain it's membership with the European Union. While the term BREXIT first appeared in the middle of 2012, it is not the first time Great Britain has sought this. In 1975 they held a referendum on whether to stay or go, at that time it was called the European Economic Community; a lot has changed over the last 40 years. In January of 2013, Great Britain's Prime Minister said that if he were to be re-elected in the 2015 general election, definite steps would be taken on a referendum for a BREXIT BEFORE 2017.
Prime Minister David Cameron did win the 2015 re-election, and if you might recall - when this happened British Pound soared in value, the same reaction that was had when Scotland decided to stay. Referendums in Britain are typically held in May and September, and it seems likely that we will see additional measures come to light in the coming months. Great Britain feels that the European Union is greatly hindering it's own personal strength, and the BREXIT isn't a sign of weakness but a look for them to seek their own independent strength.
I've gone ahead and found a fantastic article that goes significantly more in detail on this topic if you'd like to read about it: http://www.bbc.com/news/uk-politics-32810887
I will continue to trade my charts :) As no matter what the outcome of any referendum, our charts will show us whether people have decided to buy or sell their British Pounds.