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Christopher Lewis
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GBP/JPY

The British pound has rallied a bit during the trading session on Tuesday to reach towards the ¥150 level, before pulling back just a bit. That being said, the ¥150 level is obviously resistive based upon the recent action and of course the large round aspect of the figure. Ultimately, I think that we will probably struggle to get above here and therefore it may take multiple attempts to finally break out. If and when we do make that breakout, then the market will more than likely ready to go towards the ¥155 level.

GBP/JPY Video 4.03.21

To the downside, the ¥147.50 level could be an area of interest, as it has offered a little bit of support recently. That being said, the market could even break down to the ¥145 level, an area that would be previous resistance and of course the 50 day EMA is starting to reach towards that area as well. All things been equal, this is a market that I think will eventually find buyers regardless, but it is very sensitive to the overall risk appetite of traders around the world. Because of this, we will need to pay attention to how traders are “feeling”, but regardless we are in a major uptrend and there is no point in trying to short that move. In general, I have no interest in shorting this pair anytime soon unless of course something drastic happens. In the meantime, I think you continue to look for opportunities to “buy on the dip”, but keep in mind that the jobs number comes out on Friday and that could cause some volatility.

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