The British pound has rallied a bit during the trading session on Wednesday as the ¥150 level has offered support again. At the time of writing, the market is hanging about the ¥151 level, it looks as if it is going to bounce a bit from here. That being said, there is still a significant amount of resistance just above, especially at the ¥152.50 level. Any sign of exhaustion between here and there should be a nice selling opportunity, and therefore I will take advantage of that.
GBP/JPY Video 19.08.21
A breakdown below the ¥150 level would open up an attempt to break down below the hammer that sits just underneath, which would be the gateway for a massive drop. At that point, I would anticipate that we will probably go looking towards the ¥145 level, perhaps even down to the ¥140 level in what would have to be seen as a major “risk off move.” Remember that this is a market that continues to see outside forces come into the picture, as the risk appetite around the world continues to be very fluid situation.
The Japanese yen is considered to be a “safety currency” in general, all things being considered. Because of this, the market then would go looking towards lower pricing if we continue to see a lot of risk aversion. Quite frankly, this is a market that I think continues to see a lot of external influence causing huge issues. Ultimately, I do not have any interest in buying until we break solidly above ¥152.50, something that is not going to happen in the next day or two.
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