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Christopher Lewis
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GBP/JPY

The British pound has been a bit choppy during the trading session on Thursday as we have recently broken above the ¥153.50 level. At this point in time, the market is likely to go higher, perhaps reaching towards the ¥155 level. That is an area that would attract a certain amount of attention as it is a large, round, psychologically significant figure and therefore will have people taking profit as a lot of these systems get involved and work on big figures.

GBP/JPY Video 14.05.21

All things being equal, the market is likely to continue looking bullish overall, but the occasional pullback might be necessary as we have a lot of volatility. We have most certainly broken out as of late, so I do think that it is only a matter of time before buyers would come back in and pick this market up. I have no interest in shorting, and I do recognize that the 50 day EMA crossing the ¥150 level probably makes that yet again another floor the market. Consider that there is a lot of volatility and concern out there, as this market is very sensitive to risk appetite and therefore it could be very noisy. Nonetheless, the longer-term track and momentum in this market certainly looks to be to the upside.

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If we broke down below the ¥150 level, then I might consider shorting for a move down to ¥145, but to be honest I would probably be much more interested in buying this pair at much lower levels near that ¥145 level then risking going against the longer-term trend. All things been equal all be looking for an opportunity to get long.

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