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 in 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.