British pound tests resistance against Japanese yen

The British pound has rallied slightly against the Japanese yen during the day on Thursday again, but just as we had seen on Wednesday, sellers came in at the previous support line turned resistance. I think that it’s only a matter of time before the market breaks down again, especially if the GBP/USD pair starts to fall again. That shows underlying weakness in the British pound, and that of course should translate to a lower exchange rate over here. Ultimately, this is a market that I think will go looking towards the ¥145 level, and at that point we would see a lot of support as it is a large and important round figure.

If we can break down below the ¥145 level, the market is very likely to go down to the ¥143 level next. Ultimately, I think that if we do break above the ¥147.50 level, we will probably go looking towards the ¥149 level next, and then the ¥150 level which is massive in its implications and of course resistance. If we were to break above the ¥150 level, then it is a longer-term “buy-and-hold” signal. That is an area that has been a problem more than once, so it makes sense that we would struggle to get above there. At this point though, it certainly looks as if the sellers are in control and that we are simply consolidating in the short term to build up momentum. Obviously, it is much easier to sell this market than by it.

GBP/JPY  Video 25.05.18