The British pound has gone back and forth during the course of the trading session on Thursday as the markets are hovering around the ¥151 level yet again. This is an area that has been important a couple of times here over the last few weeks, so at this point in time it is likely that we are going to continue to see a lot of noise right around this level. However, if we break down below the bottom of the hammer from the previous session, then it is likely that the market goes looking towards the ¥150 level. The ¥150 level is an area that I believe offers support all the way down to the ¥149 level.
GBP/JPY Video 17.09.21
To the upside, the market breaking above the highs of the last couple of sessions could open up the possibility of a move towards the ¥152.50 level, which extends all the way to the ¥153 level as a major resistance barrier. At this point in time, the market is likely to see a lot of noisy behavior, as it is highly sensitive to risk appetite. Keep in mind that risk appetite is all over the place right now, so it does make quite a bit of sense that the confusion continues.
If we were to break down below the ¥149 level, then the bottom will open up in this market will start crashing. At that point, the market would probably be reacting to some type of major selloff when it comes to risk appetite around the world. On the other hand, if things stabilize, then it is likely that we bounce from here.
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