The British pound initially tried to rally during the course of the trading session on Tuesday but gave back the gains as we continue to see a lot of negativity. At this point, it does appear that we are going to go much lower, perhaps reaching towards the ¥147.50 level, after that, we could see a market reaching down towards the ¥145 level, which is a large, round, psychologically significant figure. With that being said, I do think that it is only a matter of time before we continue this negativity, as there is a huge rush towards safety in general.
GBP/JPY Video 21.07.21
I do believe that this is going to pick up pace, and we are starting to see a lot of fear creep it is way into the market, and that of course will be here as well. Ultimately, this is a market that I think you can continue to fade short-term rallies, at least until we can take out the ¥150 level to the upside on a daily close. I do not see that happening easily, so I am looking for short-term signals that I can jump on, as I believe this market will continue to offer plenty of opportunities.
If we did somehow close above the ¥150 level on a daily close, then I might be interested in trying to get long, but that obviously would take a major “risk on” move. At this point, I just do not see that happening and I think things are getting much more precarious now that they were just 48 hours ago.
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