British Pound Pulls Back Towards Major Figure Against Yen

The British pound has fallen a bit against the Japanese yen during the trading session on Monday to see an attempt to reach towards the ¥155 level. Having said that, we have held that area, and it looks as if we are ready to go looking to see whether or not we are going to form some type of the consolidation area, or if we break down below the ¥155 level. The reason I do not suggest that we are suddenly going to take off is the fact that there are lot of concerns around the world right now, and that of course will have people somewhat risk averse.

GBP/JPY Video 08.02.22

If we do break down below the ¥155 level, then we could go looking towards the 50 day EMA, possibly even down to the ¥152.50 level. That is an area that I would anticipate a lot of noise and, but I do think that given enough time we will probably see a fairly big move just waiting to happen. Ultimately, this is a market that I think will be noisy to say the least, as multiple central banks around the world tightening, including the Bank of England, has a lot of fear out there.

There are a lot of concerns about inflation as well, so that does have people somewhat concerned also. Longer-term, if we do turn around and rally from here the ¥157.50 level will probably end up being your ceiling in the market. Anything above there becomes “buy-and-hold.” Pay close attention to the US dollar and interest rates in the 10 year note, as they have their influence as well.

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