I think without a doubt the ¥150 level is probably one of the most important levels in the Forex world right now. This is because it represents the strength or weakness of the British pound against one of the world’s premier safety currencies. When I look at this chart, I see a lot of order flow between ¥148 and ¥150, meaning that a breakthrough in that region would be rather impressive. Beyond that, I can start to make an argument for complex inverse head and shoulders, which could measure for a move to the ¥160 level.
GBP/JPY Video 07.11.18
I suspect that we will see the market struggle just above current pricing, and the closer we get to the ¥150 level the more I think there is a danger of that. However, a daily close above that level could really send this market higher. I suspect that what we need to see is either global markets calm down about the trade war issues, which don’t seem to be going away, or we need some type of good news involving the Brexit, which seems to be weeks, if not months away at this rate. In other words, I think all things being equal we are probably going to continue to see a lot of choppiness with a downward proclivity in this market. That’s not to say that I’m willing to sell here, I would rather get closer to the ¥150 level in that way I can have a tighter stop loss. I also trade a smaller than usual position.