British Pound Has a Big Start to the Week Against the Yen

The British pound has shot higher during the early hours on Monday to reach the ¥154 region. This is an area that features the 50 Day EMA just above, which is an indicator that a lot of people will pay attention to, and it should be noted that it is sloping lower. That being said, we have bounced from the 200 Day EMA, suggesting that the market may squeeze in this general vicinity. It will be interesting to see how this plays out because you have to keep in mind that this pair is highly sensitive to risk appetite.

GBP/JPY Video 15.03.22

I think that this pair will continue to be very noisy, but the market is swinging violently in both directions so the most important thing you can do is keep your position size relatively small, in order to protect your trading account. With that in mind, if we break above the ¥155 level, that would be a strong recovery, and then I might start adding on an attempt to break out above the recent highs. On the downside, if we break below the ¥152.50 level, then it is likely that we could go looking towards the ¥150 level. That is an area that is a major support level that extends down to the ¥149 level.

About the only thing that you can count on at this point is going to be volatility, so keep that in mind. The markets should not be chased at this point, because the move has been so drastic.

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