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British Pound vs Japanese Yen Weekly Technical Analysis
The British pound has gone back and forth against the Japanese yen during the course of the week, and therefore I think we’ve got a scenario where I think eventually, we will find buyers. The ¥180 level underneath is a significant support level from what I can tell, and therefore I would be surprised to see the market breakdown below there. In fact, I think any move toward that area more likely than not will invite plenty of value hunting.
On the other hand, if we turn around a break above the ¥185 level on a weekly close, that would be a sign that we are ready to go much higher. I think in the meantime we are more likely than not going to continue to consolidate overall, so therefore this is more of a “buy on the dips” type of market, but perhaps from the shorter time frames instead of a weekly chart.
All things being equal, this is a situation where the market has been very noisy and is currently trying to work off some of the excess energy from the move higher. Markets do not go straight up in the air forever; therefore, I think the choppiness that we are seeing now is simply the normal phenomenon that you see from time to time in the markets. That being said, I have no interest whatsoever in trying to sell this market, because I do not believe that the Bank of Japan is ready to change its monetary policy.
For a look at all of today’s economic events, check out our economic calendar.
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