British Pound Continues to Grind Higher Against Japanese Yen

The British pound has rallied significantly during the trading session on Tuesday to reach towards the ¥156.50 level. This is an area that has been important more than once, so it should not be a huge surprise that we are showing short-term problems in this area. Ultimately, I do think that we could break through as long as we continue to see more of a “risk on” type of attitude. Keep in mind that the Japanese yen is considered to be a safety currency, so that of course has a certain amount of influence on how this market behaves. As long as we do not get some type of major shock, the British pound should continue to outperform the Japanese yen.

GBP/JPY Video 09.02.22

If we can break above the highs of the past three or four trading sessions, then it opens up a move towards the ¥157.50 level. That is an area that will more than likely continue to be significant resistance as well. A break down to the downside though could see this market looking towards the crucial ¥155 level which held quite nicely during the Monday session. One has to think that the buyers are trying to take over, but they have a lot of work to do, and quite frankly a lot of potential fundamental issues. Regardless, if we continue to see buyers flood into this market, we will more likely than not see a continuation into more of a “buy-and-hold” situation. Breaking down below the ¥155 level causes a lot of concerns, because then it would signify that we have in fact made a “lower high.”

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