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British Pound Continues to Pressure Upside Against Yen

By:
Christopher Lewis
Published: Mar 24, 2022, 13:38 UTC

The British pound has rallied significantly during the trading session on Thursday again, as we continue to see plenty of bullish pressure enter the marketplace and extend higher.

British Pound Continues to Pressure Upside Against Yen

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The British pound has rallied during the trading session against the Japanese Yen yet again in what has been an extraordinarily parabolic move. At this point, the market is beyond overbought, but at this point in time, it seems as if we are running on pure emotion. Whether or not this can keep up is an open question, because quite frankly I do not think it can. It looked as if the Wednesday session was going to see the beginning of the end of the parabolic move, Emperor perhaps a reasonable pullback, but we have not seen that yet.

GBP/JPY Video 25.03.22

The market will continue to be bullish overall, but I would love to see some type of pullback in order to offer value. We have gone so far off the deep end against the Japanese yen that one would have to think that a crash is very possible. That crash could shake out a lot of the “hot money”, offering value for those willing to take advantage of it.

This is a market that I think will eventually have to come back, and because of this, I would not be a buyer all the way up in this area. This is a market that needs the risk appetite of traders to still be strong, and therefore if we get some type of sudden shock to the system, this pair will almost certainly come completely undone. Ultimately, this is a market that you need to be very cautious with, but ultimately you need to see a reason to pull the trigger. Unless you are already in a long position, there is not much to do but wait.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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