The British pound has gone back and forth during the course of the trading session on Thursday as we continue to hang around the ¥152 level. This is an area that of course is familiar to traders, as we have continued to go back and forth in this general vicinity of the last week or so. The ¥152.50 level above is significant resistance, and the top of that is probably closer to the ¥153 level. That being said, every time we pull back it seems as if there are buyers willing to get involved in this market.
GBP/JPY Video 10.09.21
The candlestick of course shows that there are willing buyers underneath, but we simply cannot break out to the upside, so I think at this point we are building up pressure. The question is whether or not the buyers can continue to build up this pressure to finally break out, or will they run out of momentum? One thing is for sure, sooner or later the market will break apart to the downside if this keeps up, so this is a market that desperately needs to see some type of impulsive candlestick. I would base any trade at this point on a daily close, because you can see just how choppy we have been over the last couple of days.
The most recent swing high at the ¥153 level needs to be broken out above in order for the buyers to take completely over, but if we break down below the lows of the last couple of sessions, we could drift towards the ¥150 level. The ¥150 level is an area that I think would be important as it is a large, round, psychologically significant figure.
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