The British pound has rallied a bit during the course of the trading session on Wednesday to reach towards the psychologically important ¥155 level. This is where we had fallen from, so we have essentially turned around and wiped out the last selloff. Ultimately, the ¥155 level will attract a certain amount of attention, but it certainly looks as if the market still has plenty of bullish pressure. While I have taken profits from the recent trade, this is not to say that I would be a seller. In fact, I expect either a decent breakout, or perhaps some type of pullback that can be bought into. That being said, it is not until we break above the ¥156 level that I feel this resistance barrier is broken out above.
GBP/JPY Video 24.06.21
Keep in mind that this pair is highly sensitive to risk appetite and therefore you should be cautious about what is going on around the rest of the world. It seems as if we are back into a “risk on” type of attitude, so that does bode well for this market. Remember, the Japanese yen is considered to be a “safety currency”, so therefore if we do get some type of risk off behavior, that could send this market back. Nonetheless, the British pound is very strong in general, so I have no interest in shorting this market unless something drastic happens. In fact, it would need to break well below the €150 level for me to change my attitude about the entire market, and therefore I do not think that we are anywhere near getting short at this point.
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