When you look at the British pound against the Japanese yen, you can see that we continue to drift lower, but there does seem to be a significant amount of support underneath, extending down to the ¥150 level. If we break down below the ¥150 level, then it will open up the “trapdoor to lower pricing.” I do not necessarily see that happening very easily, but it is worth noting that the market has been stubborn just below, and therefore I think we will be paying close attention to this market over the next couple of weeks.
GBP/JPY Video 19.07.21
As far as buying is concerned, I just do not see the catalyst to do so unless of course we suddenly see a major “risk on event” coming out. I just do not see that being the case, so more likely than not it is likely that it is going to be a market that stays in the same 500 PIP range that we have seen over the last several months, especially considering that we are in the middle of summer, which of course has its own issues due to liquidity as well.
Ultimately, I think that this is a market that will be difficult for longer-term traders to deal with, and I think it more or less lends itself to be a short-term range bound opportunity, perhaps off of the daily or even the four hour charts. That being said, I am obviously paying very close attention to both the ¥155 level and the ¥150 level for a longer-term trend following type of signal. Until then, sideways will be the market that we are stuck with.
For a look at all of today’s economic events, check out our economic calendar.