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Christopher Lewis
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GBP/JPY

The British pound has rallied a bit against the Japanese yen during the trading session on Wednesday but has given back the gains as we reached above the ¥151 level. While I do not necessarily think that this is a sell signal, it does suggest that perhaps the market needs to spend a little bit of time just below in order to build up enough momentum to continue the longer-term uptrend. Obviously, we have been in a strong uptrend for a while so I do not necessarily think that you can be a seller of this pair. However, pullback does make quite a bit of sense and I do think that the ¥150 level will show a significant amount of interest.

GBP/JPY Video 11.03.21

For what it is worth, the Tuesday candlestick ended up being a shooting star and the Wednesday candlestick certainly looks sluggish, so I think at this point we are simply running out of steam. Again, I do not think that this is a selling opportunity, but I do think that we are going to see a lot of noise in general and perhaps a little bit of “base building” for the next potential move higher. Even if we break down below the ¥150 level, I think that there is plenty of support below at the ¥147.50 level that could come into play as well, and I would not be concerned about the overall uptrend until we break down below the ¥145 level, something that would take quite a bit of selling to accomplish.

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