British Pound Reaches ¥150 Against Yen
The British pound has rallied a bit during the trading session on Wednesday to reach near the ¥155 barrier. This is an area that I do expect will cause quite a bit of noise, so be interesting to see if we pull back. If we do pull back and break down below the 50 Day EMA, then it is likely that we will go looking towards the 200 Day EMA which is sitting just above the ¥152.50 level.
GBP/JPY Video 17.03.22
Keep in mind that this pair is highly sensitive to risk appetite, so you will have to pay close attention to what other markets are doing. As long as we have a lot of moving pieces out there that could cause problems, then it makes a certain amount of sense that the pair could drift lower due to the “risk-off” behavior.
That being said, if we get a daily close above the ¥155 level, then it looks like we are going to go racing back to the top of the larger consolidation area, meaning that we may go as high as ¥157.50 level. That obviously would be a very positive turn of events, not only for this pair but for risk appetite in general. Ultimately, this is a market that I think continues to see volatility, so you need to keep your position size reasonable in order to protect your account. The next move could be very violent, and therefore you need to be prudent with your money management at this point in time.
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