British pound rallies against the Japanese yen on MondayThe British pound rallied rather significantly against the Japanese yen on Monday, as traders came back from the weekend with a bit more of a positive attitude. The 153.75 level above is a bit of resistance as it was the previous high, but it looks very likely that we are going to continue to see a lot of bouncing around before we can clear that area.
The British pound rallied significantly during the trading session on Monday against the Japanese yen, as the markets are starting to realize that perhaps there won’t be a major escalation in the Syrian conflict. As we went into the weekend, a lot of trading would have been more for covering any type of risk appetite out there, as headlines across the weekend could have caused issues.
When I look at this chart, the 150 level is the “floor” of the overall uptrend, and I think that the market should continue to go much higher. I think that the 155 level above is the target, and I believe that we will eventually get there, if not higher. I like the idea of buying dips, which is exactly what we have gotten over the last couple of days. If things calm down on the risk appetite front, that should help this market as well, and the GBP/JPY pair is one of the best ways to play the markets if they are going and more of a positive attitude. Obviously, if we get some type of sell off in the stock markets or other risk appetite assets, this market could roll over rather quickly as well. In the short term, the 152.50 level is supportive, but I think it’s a minor support level, so I would not be overly concerned if we broke through it.