The British pound has continued to use the ¥155 level as a bit of a magnet, and even has shown support underneath. Because of this, I still believe in the uptrend, but I also recognized that we do not have any momentum at this juncture, so it is difficult to get overly excited. If I had to place a trade, then obviously would be to the upside, because I see so much in the way of support underneath. The 153.50 level has proven itself a couple of times now, and now it looks like we are simply looking for some type of excuse to continue what has been going on for quite some time.
GBP/JPY Video 14.06.21
If we were to break down below the 153.50 area, then the 152.50 level is the next support level. In fact, it is not until we break down below ¥150 that I even remotely consider shorting this pair. To the upside, I believe that this market goes looking towards the ¥156 level, followed by the ¥157.50 level, and then ultimately the ¥160 level sometime this summer. It is very quiet summertime trading already, so do not be surprised at all to see the market simply sit here and spin its wheels in the meantime, waiting for some type of catalyst to get moving.
There is talk of potential slowing down the reopening and the United Kingdom, so that could of course weigh upon this pair but at the end of the day this is a pair that tends to be very sensitive to the overall risk appetite so pay attention to the other markets to see traders are feeling.
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