The British pound rallied slightly against the Japanese yen on Monday, hugging the 24-hour exponential moving average and reaching towards the 150 level above. That’s an area that should offer plenty of resistance, as it is not only psychologically important, but it has been structurally important over the longer term. If we were to break above the 150 handle, I feel that the market probably goes to the 151.25 level next. Overall, this is a market that tends to move with risk appetite, so pay attention to that as well, which can be measured by several metrics, not the least of which would be cool stock markets. In general, as they rise, this pair rises as well.
Alternately, this is a market that rolling over at the 150 handle should send this market down to the 148.90 level again. If we break down below that region, it’s likely that we go down to the 1.47 level. This market will continue to be very noisy, but it’s likely that the market will eventually need to decide, and once it does it’s probably something that you can jump on in the short term to boost profits.
If we were to break above the 151.50 level, the market then goes looking towards the 152.50 level, and then eventually 155. If we can continue to see a stronger “risk on” move in the other markets around the world, that should continue to put upward pressure on this pair. If we do break down significantly, I see massive support at the 145 handle as well. That’s an area that I would look for a longer-term buying opportunity, but that of course is something that we need to think about from a longer-term perspective, and therefore out of the scope of the next 24 hours.
GBP/JPY Video 07.11.17
This article was originally posted on FX Empire