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The British pound<\/a> has rallied during the course of the week against the Japanese yen as we continue to see upward pressure. The \u00a5180 level underneath could offer a significant amount of support, as we have seen the market turnaround every time it dips down to that area. To the upside, you have the \u00a5185 level, an area that should be significant resistance. Ultimately, if we can break above there, then it is likely that the market could go looking to much higher levels, perhaps even as high as \u00a5200 which I think is a very real threat over the longer term.<\/p>\n<\/div>\n<\/div>\n After all, the Bank of Japan continues to see the need to keep loose monetary policy, stepping into the bond market in order to keep rates down. The Japanese economy is saddled with so much debt that it really has no choice, and therefore it\u2019s likely that every time this market pulls back there should be buyers willing to get involved. This will be especially true as long as the British economy continues to offer decent yields, and this is just simply a \u201ccarry trade\u201d being played out.<\/p>\n If we were to break down below the couple of hammers that we have seen over the last several weeks, then you could get a move down to the \u00a5175 level, which is where the 50-Week EMA currently is racing toward. While I don\u2019t see that happening, that could be your \u201cfloor the market.\u201d Overall, I think this continues to be a \u201cbuy on the dips\u201d type of market. I have no interest in shorting anytime soon, unless of course the Bank of England changes its monetary policy, or even less likely, the Japanese do.<\/p>\n For a look at all of today\u2019s economic events, check out our\u00a0economic calendar<\/a>. <\/b><\/p>\n<\/div>\n<\/div>\n