The British pound has initially pulled back during the trading session against the Japanese yen only to turn around and show signs of strength again. Having said that, there is a lot of noise just above and I think it will become a bit of an issue given enough time. If the market were to rollover here, then I anticipate that the market will probably go looking towards the ¥150 area right away. Breaking down below that opens up even more negativity, but at this point in time I do not necessarily think that we are going to get some type of meltdown.
GBP/JPY Video 23.07.21
A lot of this is going to come down to risk appetite as this pair is highly sensitive to that exact issue. Ultimately, this is a market that will be very noisy to say the least, and it does make quite a bit of sense that this recovery has a bit of resistance above that more than likely will push it back down. Having said that, if we were to take out the ¥152.50 level, then it is very likely that we could continue to go higher.
I do not necessarily anticipate that happening right away, but if it did, I would have to turn around a start thinking bullish again. Obviously, we still have a lot of erratic behavior, and I think that will probably be the main theme in general. Getting large in any particular position at this point in time it is probably going to be very dangerous to say the least.
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