British Pound Breaks Down Significantly Against Yen for the Week
The British pound has broken down rather significantly against the Japanese yen during the course of the trading week, to smash through the ¥155 level without much trouble. At this point time, the market is likely to continue seeing a lot of busy behavior, but the Japanese yen is most certainly a safety currency when it comes to comparison to the reddish pound. Ultimately, I think this is a market that is signaling that we are not only going to see losses here, but probably and a lot of other places as well. Quite frankly, the pair had gotten far too parabolic in the environment that we are in, and therefore I think this is a move that had to happen.
GBP/JPY Video 24.01.22
If you look back several weeks, you can see that we had been parabolic previously before, only to fall apart again. I think that is what we could be witnessing right now. It will be interesting to see how this plays out, but I certainly would not get bullish anytime soon. If we break down below the bottom of the candlestick for the week, it is very likely that we could see things turn around and break down even further towards the ¥152.50 level, maybe even the ¥150 level given enough time. I think at this point in time you are more likely than not going to see volatility but at the end of the day this is a marketplace that has been trying to form some type of range as it keeps failing on the breakout.
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