British pound struggles at ¥150

The British pound has fallen from the ¥150 level during the Friday session, as it is an area that has caused a lot of noise in the past. It’s obviously a major round number, so that by itself will cause a lot of interest. It’s also an area we have seen a lot of psychological reaction to and of course structural reaction. Because of this, I believe that the market is going to go looking for support at lower levels, and as I record this it looks as if the ¥149 level is the initial candidate. This is an area that was massively resistive previously, and I think that the market will look at this previous resistance as potential support. I believe we will eventually build up the necessary momentum to break above the ¥150 level, but if we don’t we will probably drift towards the ¥140.50 level next, and then perhaps the uptrend line underneath there.

Ultimately, this pair is highly sensitive to what’s going on in the risk appetite of traders around the world, so pay attention to stock markets and of course commodity markets. The market rallying above the ¥150 level could free the GBP/JPY pair to go to the ¥153 level, and then the ¥155 level after that. I believe that short-term pullbacks will continue to be looked at as potential buying opportunities. However, I would also keep my position size small as this market tends to be very violent.

GBP/JPY  Video 21.05.18