Christopher Lewis
Add to Bookmarks

The British pound has gone back and forth during the course of the trading session, initially rallied against the Japanese yen but then crashed into the ¥151 level. This is an area that has been supportive for some time, and therefore I think that it makes sense that we have gone nowhere. With the jobs number coming out on Friday and perhaps even more importantly the MPC out of the United Kingdom coming out on Thursday, I do not know that this market is ready to go anywhere for a significant move yet.

GBP/JPY Video 05.05.21

That being said, I believe that the market eventually has to make a decision and it is worth noting that the most recent high did the clips the previous one. I was a bit concerned about the overall attitude of the market because of that, but as long as we can hold above the 50 day EMA, I think that this market is probably going to continue to favor the upside in general. We are seen a lot of consolidation and noisy behavior right now after what has been a very strong run to the upside, which is typical of a market that has gotten ahead of itself. The 50 day EMA also sits right roughly at the ¥150 level, so it is very likely to be an area that will attract a lot of attention and therefore a lot of monetary inflow. If we break down below the lows just underneath there, then I might consider selling to reach towards the ¥145 level but that would be a short-term trade at best.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker