The British pound has initially fallen during the trading session on Tuesday only to turn around and show signs of life again against the Japanese yen. Ultimately, I think that this is a market that is going to move on risk appetite, which seems to be coming back into the marketplace. With this, I think that we are looking at a scenario where the market is simply going to go back and forth depending on the latest headlines, but it certainly looks as if we are going to make a somewhat serious attempt to break towards the ¥155 level based upon the massive turnaround that we had during the session on Monday.
GBP/JPY Video 23.06.21
Furthermore, it is probably worth noting that we have been in an uptrend for quite some time, so it makes sense that we simply continue the same momentum. Ultimately, this is a market that continues to see volatility more than anything else, but it still looks as if it is going to be a “buy on the dips” type of situation. This is a market that continues to see a lot of choppy behavior, and of course will move on the latest headlines but at the end of the day it certainly looks as if we are ready to go higher.
Whether or not we can break above the ¥155 level would be a completely different situation, but at this point in time it certainly looks as if we are going to make a significant attempt to do so. Ultimately, this is a market that I think continues offer plenty of opportunities if you are patient enough.
For a look at all of today’s economic events, check out our economic calendar.