GBP/JPY down big today
GBP/JPY is down 131 pips today to 153.53 and the leg lower comes right after a failed test of the 2018 high.
I had a look at this chart
three weeks ago because it was the best-perfoming FX trade in May. I highlighted the 2018 high of 156.61 as huge resistance level and while I liked it, I noted it was a “it’s a ‘buy on the break’ trade not a ‘buy and hope for a break’.”
Now it looks like that break isn’t coming. What’s doubly worrisome is the worrisome rise i
n UK covid cases and Sunak saying today that no more support is coming for businesses. I don’t think that’s going to halt the recovery in the UK but the risks are creeping up.