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Christopher Lewis
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GBP/JPY

The British pound has gone back and forth during the course of the trading session on Tuesday as we continue to sit around the ¥150 level. The ¥150 level is of course an area that will attract a lot of attention due to the round figure, and of course the fact that the 50 day EMA is reaching towards that area. If we can break above the highs of the last couple of sessions, it is very likely that we will continue the overall uptrend, perhaps reaching towards the ¥153.50 level.

GBP/JPY Video 14.04.21

On the other hand, if we turn around and break down below the previous lows, then the market would break down below the 50 day EMA, perhaps opening up a move down to the ¥145 level. At that area, we would probably be looking at the 200 day EMA intercepting price, allowing for a potential bounce. At this point in time, I do believe that the market is going to continue to be very choppy, and of course held hostage to risk appetite. As risk appetite rises, money typically flows away from Japan, and therefore it could lift this market.

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To the upside, if we were to break above the ¥153.50 level, it is likely that we could go looking towards the ¥155 level, which of course is the next large, round, psychologically significant figure. All things being equal, we are in an uptrend so that something that you should keep in mind, and therefore I am not looking for a selling opportunity, at least not anytime soon, but I will let you know here at FX Empire if I start to change my attitude.

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

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