British Pound Pulls Back Below ¥155 Against Yen for the Week

The British pound has fallen rather hard during the course of the week, as we have seen a massive amount of risk appetite destroyed. The pair of course is highly sensitive to the risk appetite around the world, and with the Russians invading Ukraine, it does suggest that risk off behavior will continue to be a major concern when it comes to geopolitical events. It is worth noting that the ¥158.33 level above is a “double top”, and as a result if we were to break above there, then it is likely that we would get more of a “buy-and-hold” type of situation.

GBP/JPY Video 28.02.22

Underneath, it is very likely that the ¥152.50 level continues offer rather significant support. The 50 week EMA is starting to reach towards that area and therefore I think it would make a certain amount of sense that the market will continue to look at that as a place where buyers might come back into the situation. That being said, the market is likely to continue to see a lot of noisy behavior, but if we were to break down below the ¥152.50 level, then we could see a dump towards the ¥150 level.

To the upside, if we do get that “buy-and-hold” move, the market would more than likely continue to go much higher based upon the interest rate differential alone. That being said, I think it is going to be difficult to see this market rally like that considering how much is going on from geopolitical and global slowdown issues, so really at this point in time I think we will be noisy more than anything else.

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