British pound rallies against yen in “risk on” move

The British pound has rallied a bit during the trading session on Tuesday, breaking above the 152 handle. Now that we have done that, we are entering an area that is significant in clustering, and clustering of course can cause some issues. I believe that the market will probably pull back slightly, but it would only be to build up momentum more than anything else. I think that if we can clear the 153 level, then we go looking towards the 153.75 level, and then eventually be 155 handle after that.

The 150-level underneath is the hard “floor” in the market, and I think it has proven itself to be scary enough to the sellers that it should continue to keep this pair an uptrend. I like buying short-term pullbacks to build up the momentum and find value. This of course will be exacerbated by strong stock markets were commodity markets as it shows that people are willing to put money to work. Remember, this pair is highly sensitive to risk appetite around the world, not just in Great Britain or Japan. The Japanese yen is considered to be “safety” as far as currency traders are concerned, so that’s the most important thing to know about this pair.

I believe that there is significant support near the 151.75 level, and that is probably the immediate support barrier that traders will be looking to hold the market up.

GBP/JPY  Video 25.04.18