The British pound has rallied a bit during the week, reaching towards the ¥150 level, an area that has psychological importance attached to it, as well as structural. I think that if we can break above the ¥150 level, the market is free to go much higher. At that point, I would anticipate a move to the ¥153 level, if not the ¥155 level. The uptrend line underneath should continue to keep this market to the upside but if we were to break down below that uptrend line, I think this market would unwind rather drastically. I believe that we need to pay attention to risk appetite in general, because that will have a major influence and where we go as per usual.
The stock markets are a good barometer of where risk appetite is going, because if they rally it typically means that the GBP/JPY pair will rally right along with them. Obviously, the exact opposite as possible as well so I think that you should pay attention to the interconnectivity of these markets. I would say that if we break down below the uptrend line, the market would unwind drastically, and it could be a major tipping point. I believe that waiting for a weekly close either above ¥150 or a weekly close below the uptrend line is what we need to see to put money to work with a significant amount of confidence on the longer-term time frames.