The British pound initially shot higher, but then pulled back against the Japanese yen later in the day on Wednesday. I think we are starting to see a bit of support here though, but quite frankly you’re going to have to pay attention to the GBP/USD pair to get an idea as to what direction you should be trading this market. This is because the US dollar is the benchmark for most currencies, and therefore shows relative strength. Also, I would pay attention to the USD/JPY pair, because it gives you an idea as to where the yen is going. If both lineup in one particular direction, then it’s easy to trade this pair. Currently, I think it’s probably best to stand on the sidelines though, because this looks like a very volatile market just waiting to happen. If we can break above the 143.50 level, then I think for free to go to the 145 handle.
GBP/JPY Video 17.8.17
This article was originally posted on FX Empire