British Pound Hanging on to Support Against Yen

The British pound has rallied just a bit during the trading session on Friday as we continue to see noisy behavior, with the market hanging about just below the ¥155 level. Because of this, the market seems to be respecting so-called “market memory you quote as the ¥155 level has been somewhat important. Having said that, we have also slice through it previously, so I do not know how much I read into the level anymore. Currently, the market is likely to see a lot of noisy behavior based upon the fact that we have a massive amount of geopolitical concerns, and that of course has a major influence on the Japanese yen itself.

GBP/JPY Video 28.02.22

Looking at the chart, if we can break above the 50 day EMA is very possible that the market goes looking towards the ¥157 level again. On the other hand, if we were to break down below the lows of the Thursday flash crash, we will more than likely test the 200 day EMA, right around the ¥152.50 level. That is an area that of course has been important multiple times as well, and I would anticipate that there should be a certain amount of buying pressure in that region.

In general, this is a market that does tend to move back and forth with risk appetite, so you need to keep that in mind when you are taking a look at this chart. The British pound has been a little bit more resilient than some of the other currencies, so that is worth noting as well. All things been equal, this is a market that should remain volatile.

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