British pound very noisy against the Japanese yen during Tuesday session

The British pound has spiked against the Japanese yen initially during trading on Tuesday, but as you can see fell right back over as we continue to see a lot of noise in this market. I believe that the ¥150 level above is going to continue to be a major barrier, something that will be very difficult over, as it is a large come around, psychologically significant number, and has shown a proclivity to offer structural resistance as well.

I believe we will continue to see a lot of noise regardless what happens next, but right now it appears that the ¥148.50 level is the floor of the overall consolidation which extends towards the ¥150 level, an area that I think is going to take several attempts to break above. If we do break down below the ¥148.50 level, then I think we probably unwind towards the uptrend line underneath. This is a market that is highly sensitive to risk appetite, so keep that in mind as market participants tend to be very sensitive in general when it comes to things like stock markets, bond markets, and of course commodity markets. The Japanese yen is being controlled by a central bank that is nowhere near tightening its monetary policy while the Bank of England looks likely to raise interest rates at least once over the next 12 months. Because of this, I think we will continue to see upward pressure unless something bad happens.

GBP/JPY  Video 23.05.18