TenkoFX - Analytics


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    GBP/JPY consolidating around 153.50 after recent up-surge

    Having topped above 154.00 on Tuesday, the GBP/JPY cross is trading in a narrow band between 153.20-153.90 area, digesting a recent sharp recovery from a multi-month low level near 145.40 region touched in the previous week. The cross has managed to post a swift recovery of approximately 900-pips in the past few trading session on receding Brexit fears after the recent poll results showed dominant position for the 'Remain' camp. Although the 'Remain' camp has managed to regain some support in the recent days, but the final outcome is still very much uncertain as support still seems evenly split between the two camps.With an empty economic docket from the UK and Japan, the cross is struggling to direction as traders now wait for fresh impetus from outcome of the latest polls ahead of Thursday's referendum.Technical levels to watchBullish momentum above 154.00 level and a subsequent strength above 154.55-60 resistance (50% Fibonacci retracement level of the pair's recent sharp slide from 163.89 to 145.40 - multi-month low level touched in the previous week), is likely to gain traction immediate towards 20-day SMA resistance around 155.00 psychological mark, which if conquered has the potential to continue boosting the pair further towards 61.8% Fibonacci retracement level resistance near 156.80-157.00 round figure mark.Conversely, weakness back 153.00 round figure mark, leading to a break below 38.2% Fibonacci retracement level support near 152.50 level, now seems to drag the pair back towards 150.00 psychological mark support. A decisive break below 150.00 mark support would negate near-term bullish expectations and turn the pair vulnerable to head back towards recent closing lows support near 148.00 level, ahead of multi-month lows support near 145.40 region.

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