British Pound Runs Into Major Resistance Against Yen

The British pound has initially tried to take off to the upside during the trading session on Thursday but continues to see the ¥155 level as a major barrier. Furthermore, the 50 Day EMA sits right at the ¥155 level, so it makes quite a bit of sense that we would see a bit of resistance there. It is also worth noting that although we had an explosive move to the upside during the previous session, we stopped right at resistance, and perhaps we may have gotten there too quickly.

GBP/JPY Video 04.03.22

At the very least, I would anticipate a little bit of a pullback and therefore a scenario where momentum will keep this market from breaking out. That being said, if we do break above the ¥155 level on a daily close substantially, then I think that the market is probably going to go looking towards the ¥157 level.

When I look at this chart, it does make a certain amount of sense that we would pull back to at least offer value for those who want to go long of this market. Looking at this chart, I think that we may have gotten a little overexcited during the previous session and therefore it is going to be difficult to keep up that type of momentum. That momentum is exactly what would be needed for a major breakout because there is so much in the way of noisy behavior between here and the double top that we just formed a couple of weeks ago.

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