[ad_1]
British Pound vs Japanese Yen Technical Analysis
The British pound has initially fallen against the Japanese yen during the trading session on Thursday, only to turn around and show signs of life again. It looks like every time the market sees the British pound drop against the Japanese yen, there are buyers willing to step in and pick the market back up. At this point, I think the ¥182.50 level is an area that you need to pay a certain amount of attention to, because if we can break above there then I believe that the market continues to go higher, perhaps reaching the ¥185 level.
Underneath, the market is likely to continue to see a lot of support down at the ¥180 level as well, assuming that we even get back down there. Ultimately, the Bank of Japan recently has jumped back into the bond markets, doing direct quantitative easing, so it’s almost impossible to imagine that the interest rates in Japan are going to climb anytime soon, or at least climb in any meaningful way. With this, I think you continue to see this market go higher, and eventually we will probably see this market break out to the ¥185 level. That being said, you should also pay close attention to the USD/JPY pair, because I think that’s essentially what the market is waiting to see.
What I mean by this is that the US dollar needs to break above the ¥150 level, and therefore the Japanese yen will probably start to soften against almost everything. In that environment, I think you got a situation where the Japanese yen will then be sold off by almost everything. That being said, it’s worth noting that the market seems a bit hesitant to start shorting the Japanese yen aggressively, maybe due to the fact that recently we had seen what looked like central bank intervention. However, they can only do so much and typically these interventions fail over the longer term as market forces overwhelm them. As things stand right now, I have no interest in shorting this pair, and I do not want to own the Japanese yen against the British pound, or any other currency for that matter.
For a look at all of today’s economic events, check out our economic calendar.
[ad_2]
Source link
