Will the GBP/JPY pair breakout of the resistances @ 149.00 this time around?

[John Naronha]

[Ignatius Bose]

GBPJPY has strong resistances around the 149.00- 149.25 mark. Since July last year, the pair has tested the levels several times before reversing. This time around too, traders will be keenly watching the levels to see if Sterling can finally take out the resistances and head higher.

The key to the breakout of the major resistances will depend on the outcome of how UK exits Europe before the end of the March 29th deadline. With the UK Parliament expected to vote again today, the near-term direction of the Sterling will depend on the outcome of today’s vote. Another defeat in the House of Commons could be catastrophic especially with no backup plan in place, which could push both the Sterling and the EURO to fresh multi-year lows, not only versus the yen, but the other major FX pairs as well. 

Wait for the outcome of the House of Commons vote before initiating fresh trades on the Sterling.