British pound falls against Japanese yen during the week
The British pound has broken down significantly during the week, breaking down below the bottom of the shooting star from the previous week. The shooting star was sitting on top of the 150 handle, which is a very negative sign, and now that we have broken down below there, I think that the market goes down to the 145 handle, and then perhaps the 140 level. It looks as if the British pound is falling against most other currencies, so I think that given enough time we should see sellers jump into this market on any rally.
Any rally at this point in time will be a bit suspicious until we can close above the 150 handle on at least a daily chart, if not higher than that. I think that the market will continue to show a lot of volatility, and of course the pair tends to react to overall market risk, which is a bit mixed after the jobs number on Friday, we are closing towards the bottom of the weekly candle, and that of course is a very negative sign as well. I suspect that we are going to see a bit of continuation based upon that, and I think that we will ultimately go much lower, especially if we start to see a lot of fear jump back into the stock markets. This will be an interesting couple of weeks, so I would start out with a small position, and then add as it works out in your favor.