The British Pound Trying to Break Out Against Yen

The British pound has rallied again against the Japanese yen but still has a lot of work to do above. I think at this point in time, we will have to pay close attention to the ¥157.50 level above, because it is an area where I think we will see a lot of resistance. If we can break above there, then it is likely that we could continue to end up in a “buy-and-hold” type of situation. Ultimately, this is a market that I think continues to see a lot of volatility, and pullback should end up being a bit of a buying opportunity based upon value.

GBP/JPY Video 10.02.22

The ¥155 level underneath should continue to be important, and now that we have the 50 day EMA jumping into the picture at that general vicinity, it does make a certain amount of sense that we will see buyers come in and try to support this. If we can get a little bit of a pullback and offer value in that area, I suspect that you will have quite a few buyers jumping in to try and take advantage of this. The markets will continue to be very noisy, but I do believe that is an area of extreme demand.

If we break down below the ¥155 level, then we probably have a move towards the ¥153.50 level just waiting to happen. Keep in mind that this pair is highly sensitive to risk appetite, as the Japanese yen is considered to be a “safety currency.” Ultimately, this comes down to risk appetite more than anything else as we already know that the Bank of England is trying to tighten up monetary policy.

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