UnknownUnicorn890690

GBP/JPY - The Yen falls

Long
FX:GBPJPY   British Pound / Japanese Yen
Some time has passed since we reviewed the situation on the GBP/JPY pair. The reason for the review is the recent demand for it.

First of all the descending triangle pattern was broken. The reason now is clear, as there exists a dominant channel down pattern. The lower trend line of the channel provided the support needed for the Pound the rebound against the Japanese Yen.
In the aftermath of the rebound a short term ascending channel has been revealing itself.
Comment:
Fundamental events have forced the Pound into a jump against the Yen.

Theresa May has visited Japan and is already negotiating trade prior to Brexit. That has given strength to the GBP/JPY, as it is expected that exports from UK to Japan will increase in the future.
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