British pound rallies initially against the Japanese yen, but pulls back a bit during Friday session

The British pound rallied significantly against the Japanese yen during the trading session on Friday, reaching towards the 153.80 level above. That’s an area that has caused a significant amount of resistance though, and we have pulled back a bit. At this point, I suspect that the market will continue to go higher, and that these pullbacks should be buying opportunities. Allow this market to work its magic, as it is ready to go higher, and I think that the 155 level above is going to be the target based upon longer-term charts, and if we can keep the headlines relatively calm between the United States and China, I think that will continue to drive this market to the upside.

I like the idea of buying these dips, but it’s likely that we will have a lot of volatility to deal with, so be careful and by these markets in slow bits and pieces. Ultimately, I think that we will break above the 155 level as well, but it’s going to take a lot of effort to do so. This currency pair will continue to be very noisy and do continue to follow the stock markets and commodity markets in general as it gives an idea as to where risk appetite is, and that of course is a major driver of this pair as it moves money away from the Japanese yen. I have no interest in selling.

GBP/JPY Video 16.04.18

This article was originally posted on FX Empire

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