British pound rallies against the Japanese yen, and everything else

The British pound has initially pulled back during the trading session on Thursday but found enough support to turn things around and break to the upside. Now that we have made a fresh, new high, it’s likely that we will go towards the 153 level, and then possibly the 155 handle after that. The 155 level has been structurally resistive in the past, and it is also an area where a certain amount of psychological importance would be attached to it as it is a large, round, psychologically significant number. I believe that the uptrend line underneath should continue to keep the market afloat, and now that we see this most recent bullish move, I believe that we continue to see a “buy the dips” situation.

The uptrend line underneath is of course major support, and a breakdown below that level should send this market to the 150 handle. If we break down below the 150 handle, then I think the market would unwind and go much lower. I think that it’s very unlikely to happen though, so I’m looking for the use areas to offer enough support to keep the uptrend intact. Eventually, we can break above the 155 handle, and that should send this market much higher. I believe that eventually the British pound will continue to go much higher, but I think that the risk appetite will need to be intact to continue to push this market higher. Remember that the headlines will be an issue, but longer-term it looks as if the buyers are making a statement.

GBP/JPY  Video 13.04.18