The British pound has gone back and forth during the course of the trading session on Monday as the markets are simply killing time around the ¥151 level. The market will continue to be very noisy and choppy, but I do think that a pullback is probably the most likely of outcomes. Having said that, if we were to take out the ¥151.50 level, then the ¥152.50 level is your next target. To the downside, I believe that the market could go looking towards the ¥150 level again, as the market seems to be attracted to these big figures.
GBP/JPY Video 31.08.21
We have dipped below there before, so I believe that the ¥150 level represents a 100 point support level, and it is very possible that if we break down below the ¥149 level, the bottom of the market could fall out. At that point, I would become aggressively short of this market, and it would almost certainly coincide with some type of negativity out there anyway. The markets tend to move in a “risk on/risk off” type of attitude, and as a result I think what we are seeing here is a perfect representation of how the market “feels.”
The Japanese yen is considered to be a safety currency, so please keep that in mind as we navigate the markets, but really at this point in time I think we are trying to figure out whether that was a “double bottom”, or if it was just a simple bounce before we see more selling pressure and send this market much lower?
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