The British pound has rallied a bit during the course of the trading session on Friday to go into the weekend with a little bit of a positive spin. That being said, we are starting to struggle a little bit in this general vicinity, and therefore I think we are getting ready to roll over again. Ultimately, this is a market that will be moving on risk appetite in general, which is a bit all over the place. At this point, I think it is very likely that we may get a little bit of a pullback and potential continuation of the overall downtrend. That could send this market down to the ¥150 level, but it will be interesting to see how this plays out over the next couple of days.
GBP/JPY Video 26.07.21
To the upside, if we were to break above the ¥152.50 level, then the market would probably go looking towards ¥155 level in a very “risk on move.” At this point, then we would be testing major resistance. If we can break above there, then the market is likely to go looking towards the ¥160 level. One thing I think you can count on regardless though is going to be a lot of choppy behavior so that is something that we need to pay close attention to, with the idea of fading both signs of strength unless of course we can clear that barrier above. Regardless, I think this is going to be very noisy over the next couple of weeks.
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