British Pound Continues to Dig Into Resistance Against Yen

The British pound has rallied again during the trading session on Friday as we have continued to see bullish pressure. There is a lot of noise in this general vicinity, so is very likely that traders will struggle to get higher. The ¥157.50 level is the next barrier that people will be paying attention to, and therefore I think it is going to be difficult to continue to simply slice higher and break out above there. At this point, signs of exhaustion will be jumped upon by myself, and I think we could fall rather hard if we get some type of major “risk-off” type of situation.

GBP/JPY Video 21.03.22

It is also probably worth noting that the previous candlestick is somewhat neutral, and therefore I think a lot of noise is going to be had in this general vicinity. Regardless, I do like the idea of trying to fade this market overall, but timing will be a bit of an issue at this point. Ultimately, this is a market that looks as if it is stretched, so keep that in mind.

The pair is highly sensitive to risk appetite, and at this point, one has to wonder how much longer risk appetite can be positive? There are far too many negative headlines and potential problems out there to think that we are suddenly going to shoot straight up in the air as far as risk appetite is concerned. Looking at this chart, we are getting close to the top of the overall trading range that we have been in for quite some time. Ultimately, this is a market that probably will be changing its longer-term attitude in the next few days.

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