Christopher Lewis
Add to Bookmarks

The British pound has fallen a bit during the course of the week to break down below the ¥150 level, an area that of course is a large, round, psychologically significant figure. That is an area that will attract a lot of attention and has offered support for a couple of different attempts at breaking down. That being said, the market is still overextended so I do think that eventually we need to either pull back there or simply kill time in order to get rid of the excess froth in the market.

GBP/JPY Video 19.04.21

If we do break down below the last couple of candlesticks, then it is likely that the British pound drops to the ¥145 level, but at that point I would anticipate seeing a lot of support as well. We are obviously in an uptrend so I do think that it is only a matter of time before we try to go higher, assuming that we can continue a “risk on” attitude. Otherwise, if we see some type of market shock or “risk off” type of move, then it is markedly negative for this market and then I think that what we are looking at is a situation where this is simply going to go back and forth with the idea of how the market is “feeling.”

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Ultimately, the ¥153.50 level above being broken could open up the possibility of a move towards the ¥155 level. That of course is the next large, round, psychologically significant figure, and it will almost certainly cause a bit of profit-taking. I think it is a tempting target for the buyers, so will have to wait and see whether or not they can make that happen.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker