The British pound rallied quite significantly against the Japanese yen during the trading week, showing signs of extreme momentum. For this reason, the market seems to continue to rise in the long term, and at this point it is virtually impossible to sell this pair short. That being said, the market will likely continue to view the Â¥ 155 level as an important level to pay attention to, as it should now offer some floor in the market.
Video GBP / JPY 18.10.21
Longer term, it is very likely that we look towards the Â¥ 160 level, which is an area that has seen some significant selling on the monthly chart. Breaking above that then allows that market to climb much higher. On the downside, falling below the Â¥ 155 level is of course a negative turn of events, but not enough for me to sell the market. The Â¥ 152.50 level is just below and also offers support. With all of this, I think it would only be a matter of time before the value hunters return. The Japanese Yen is hammered against almost everything, so the British Pound will of course be different.
I believe right now that the British Pound is one of the best currencies to play against the Japanese Yen, simply because the British Pound is starting to try to break through against multiple currencies, not just this one. The size of the candlestick alone tells you that we have a lot of momentum in this market.
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