The British pound has rallied rather stringently during the trading session as Americans have jumped on and taken advantage of low pricing. The market reached towards the ¥148 level, which of course has been a resistance barrier in the past. I think that it is only a matter of time before we get an opportunity to take advantage of a break out and look for a move towards the ¥149.50 level after that. Overall, this is a market that I think does offer a lot of opportunity for the longer-term trader, but the short term trader will probably be relegated to minor pullbacks that they take advantage of. I believe that the ¥147.50 level should be an area of interest going forward, and I will continue to buy dips based upon headlines.
Overall, I think that the market is going to continue to be very noisy due to the Chinese tariffs, but I think ultimately we have gotten a bit over our fear. Because of this, I think that the market continues to find buyers based upon value on the sharp pullbacks. In general, I believe that the market continues to show signs of volatility that you can take advantage of, but by all means I would be very cautious about my position size. If we break down below the ¥147 level, then we could go as low as ¥145 next. I expect even more support there.
GBP/JPY Video 10.10.18
This article was originally posted on FX Empire
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