The British pound initially rallied against the Japanese yen in a bit of a continuation when it comes to the risk appetite of this pair, but then turned around to show signs of weakness. The ship the candlestick is a bit of a shooting star as I record this, and that of course is a negative sign. If we were to break back down below the ¥150 level, one would have to think that we could very well challenge the lows again. If we break down below the hammer from several weeks ago, that opens up the trapdoor to much lower pricing.
GBP/JPY Video 25.08.21
It is worth noting that there are a lot of anxieties around the world when it comes to global growth, and that could lead more money into the Japanese yen to begin with. The British pound has also fallen against the Swiss franc during the trading session, so perhaps there are concerns about the Delta variant in the United Kingdom, or maybe it is just a simple expression of risk appetite as the GBP/CHF pair tends to move right along with this pair when it comes to the idea of taking risks.
To the upside, if we were to break above the ¥151.50 level, that could open up a move for another 100 pips to the upside, as the ¥152.50 level has been an area of interest. As long as that is going to be the case, I think there would be a lot of resistance there as well. It certainly looks as if this market is trying to break down, but I am not quite ready to start selling, I would like to see a fresh low before I put money to risk.
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