Once again, the Dragon struggles to fly above the 142.000 levels as it once again tests the daily resistance for the third time this week. As Friday progresses, it has seen a 0.25% drop. Despite its breakout above the 140.000 levels two weeks ago, the bullish momentum has been stifled.
Currently, both the United Kingdom and Japan are facing a new wave with the pandemic, with the Tokyo Metropolitan area as well as a few other prefectures going under a State of Emergency, and with the United Kingdom under lockdown. The pandemic continues to weigh on both economies. However, despite the ongoing events, the British Pound seems to have the edge.
In comparison to the weakening Yen, the British Pound has been showing strength as it continues to test the 142.000 levels despite the news of the pandemic. With targets of 145.000 on the bullish horizon, if this pair fails to break the 142.000 level, we may see it come tumbling down as bulls lose steam.