British Pound Spikes Against the Japanese Yen in Early Trading

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen rather hard after initially spiking much higher against the Japanese yen in Asian and European trading. This may be the “blowoff top” that we have been waiting for, to kick off either major selling or just a pullback in order to offer value. The market has gotten far overstretched, so much to the point whereby the time New York came online, it pulled back 200 pips. Amazingly enough, it was still positive at this point.

Looking forward, I believe this is a market that will show quite a bit of volatility, but you should also keep in mind that it had previously been in a very strong uptrend. In other words, there are buyers underneath that might be looking to pick up value. The ¥160 level is an area that will offer a certain amount of interest, but I think there is even more structural support at the ¥157.50 level. That area has seen resistance multiple times, so “market memory” could come into the picture.

Pay attention to risk appetite because this pair is highly sensitive to it so you can keep an eye on stock markets to give you an idea as to what risk appetite is doing. The market has gotten far ahead of itself, so I do not necessarily think that a pullback foretells anything major, just that reality has come back into the markets. Gravity is a funny thing; it eventually shows up. I would not be a buyer all the way up here, as you would be chasing a wild trade, to say the least.

GBP/JPY Technical Analysis Video 29.03.22

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