The British pound has pulled back from the ¥152.50 level, an area that has been important a couple of times in the past, so it should not be a huge surprise that we have seen this area as important more than once in the past. That being the case, the market is likely to continue seeing a little bit of hesitation in this area. That being said, we have seen a little bit of a recovery at the ¥152 level, so I think the ¥152 level will be crucial for the next move. If we break down below there, then it is likely that we continue to drop towards the ¥150 level.
GBP/JPY Video 28.07.21
I do think that this pair is going to be very difficult to get involved with, as it is a very sensitive market when it comes to risk appetite in general, which is very fluid at the moment as there are multiple arguments both for and against growth going forward. That being the case, the market is likely to continue seeing a lot of choppy behavior, and at this point you have to keep in mind that if we cannot break above the ¥152.50 level, then it will be a “lower high”, and that could open up quite a bit of negativity.
Nonetheless, the markets are very skittish and with the Federal Reserve coming out late on Wednesday with its assessment of the world, it will be interesting to see if that has an effect throughout the markets and by extension this pair as a reaction.
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