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British pound rallies against the Japanese yen

Christopher Lewis
Updated
The British pound rallied a bit during the trading session on Wednesday, reaching towards the ¥148 level. Short-term pullbacks should offer buying opportunities, as the 50 SMA has been both support and resistance on the hourly chart.

The British pound has rallied a bit against the Japanese yen during the trading session on Wednesday, testing the ¥148 level. We are starting to stall a little bit, but I think it’s only a matter of time before a pullback shows up and gives us an opportunity to pick up a bit of value. I think that the market has the opportunity to be very volatile in general. I think that if the market pulls back from here, we could go looking towards the ¥146.75 level. I think it’s only a matter of time before buyers would get involved, and I look at a pullback as potential value that we can take advantage of. Remember, this pair is very sensitive to risk appetite around the world so pay attention to the stock markets, and of course the geopolitical headlines, or better yet: the lack of.

If we can status serious trouble, the market is likely to go higher, but if we break down below the 1.4 ¥6.75 level, we could pull back towards the ¥145 level. I think that the ¥145 level could be crucial, so if we break down below there it’s likely that the market could unwind further, perhaps drop into the 143.50 young level. Expect volatility, but that’s nothing new when it comes to “The Dragon.” Longer-term, when I look at the ¥150 level, I recognize it is a major topic in this market. I believe that the summer is going to be very noisy in this pair, as we worry about trade wars, tariffs, geopolitical events, and the like.

GBP/JPY Video 07.06.18

This article was originally posted on FX Empire

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