InstaForex

November 26, 2021

Shocked! GBP/JPY Surprise With Drastic Plunge

 The Yen returned to the top on the GBP/JPY chart to lead the price movement in making the plunge at the opening of the Asian session today (Friday).


Not only that, the decline remained continued at the beginning of the European session to negate the 7 -week low of around 152.380 to enter the RBS (resistance become support) zone of 152.000.


The price movement in the meantime is seen to have re -reacted to create a downtrend pattern after the price continued to trade below the Moving Average 50 (MA50) barrier level.


Concerns about the surge in the spread of the Covid-19 outbreak continue to haunt the market and are compounded by the discovery of new variants that continue to make market sentiment at this point back in turmoil.


Indirectly, that aspect has pushed the samurai currency to show a strengthening at the close of this week after gaining support as a safe-haven currency.


One more thing, the important Japanese data published with a positive reading is also the reason why the value of the Yen was able to rise at a time when the Pound was weakened by the post-Brexit.



The lower bearish capability will see the price movement on the GBP/JPY chart to break the RBS 152.000 zone for the next expectation will test the 151.000 support zone.


It can be seen that the support zone is a resistance zone that was once the focus in early June 2021 before being successfully broken in the same week to support the price spike.


Meanwhile, if the price movement wants to start giving an early signal in making a trend change, the SBR (support become resistance) zone of 153.000 is likely to be the target to be achieved.


In parallel, an aggressive rise will test the resistance level around 154,000 first before the high probability will make a climb in testing the SBR zone of 155,000.