The British pound has fallen a bit during the course of the trading session on Friday, to dig into the hammer that had initially because the market to bounce. That being said, it certainly looks as if we are ready to go much lower, and therefore I think what we are going to see is a downward move towards the bottom of the hammer from several weeks ago, and then an opening towards the ¥147.50 level. That being said, I do not think that the market stops there, I think that the market is likely to go much further to the downside, with the ¥145 level being targeted, and then eventually the ¥140 level. This obviously suggests that there would be a huge “risk off” type of situation.
GBP/JPY Video 23.08.21
Ultimately, we are starting to see a lot of trouble when it comes to financial markets, and therefore the Japanese yen will continue to attract a certain amount of attention. Looking at this chart, it certainly looks as if the bottom is about to fall out, which means we could see yet another acceleration. We are looking at “risk off” attitude around the world, and as long as that is going to be the case the Japanese yen will attract a certain amount of attention anyway.
This pair does tend to be very volatile and sudden and its moves, so do not be surprised if it certainly takes off to the downside. As far as the upside is concerned, we would need to take out the ¥151.50 level, in order to take out the negative candlestick from the Thursday session in order to even remotely begin to think about the upside.
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