British Pound Continues to Struggle With ¥155

The British pound has gone back and forth during the trading session on Tuesday as we continue to see the 155 level cause issues. That being said, one has to look at this as a potential ceiling, as we have had a nice little pullback against the drop from the top, and of course you should also keep in mind that this is a pair historically speaking has been very sensitive to risk appetite.

GBP/JPY Video 02.02.22

Pay attention to stock markets and other risk assets around the world, they could give you an idea as to what could happen here. The more risk that people are willing to take on, the more likely this pair is to rally. That being said, we are in such a skittish attitude these days that I do not trust any rally for a bigger move. At this point, I need to see a daily close above the ¥155 level in order to get bullish. I think there will be quite a few issues coming up in the short term future that could cause problems for risk appetite and therefore I think it could cause problems for this pair.

This is not to say that I am looking for some type of major meltdown, rather that I recognize this is a pair that will be sensitive to a lot of the comings and goings of the stock market and geopolitical tensions. Keep in mind that the last time the market went parabolic, we had a slow and protracted grind lower. That could be what we are seeing here but if we got a daily close above the Monday candlestick, I might be convinced that we are going back towards the highs.

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