British Pound Threatening Major Breakout Against Japanese Yen

The British pound has skyrocketed against the Japanese yen during the trading session on Thursday to reach towards the recent highs that we have seen. Quite frankly, the moves during the day were ridiculous in almost everything I follow, as we initially had a hot CPI number coming out the United States, only to see the market turn around and take everything back up towards the high growth type of situation. It defies all logic, but at the end of the day price is the only thing that matters, and it is obvious that this market wants to go much higher.

GBP/JPY Video 11.02.22

Going forward, any type of pullback is probably going to be bought hand over fist, as there will be plenty of value hunters out there looking to take advantage of a market that they may have missed. Quite frankly, I am a bit surprised that things have turned out the way they have, but at the end of the day on you can do is follow the market instead of trying to make sense of it sometimes. This market will continue to be very noisy but it also is obviously very bullish. In that sense, you cannot be a seller of this pair unless something changes rather drastically. The Japanese yen is of course considered a safety currency, so if there is some type of break down in risk appetite around the world, that could have a major influence on what happens next in this market. Regardless, it certainly looks like we’re going to try to blow through the ¥158 level.

For a look at all of today’s economic events, check out our economic calendar.