The British pound has initially rallied against the Japanese yen during the trading session on Wednesday, to break above the ¥155 level. However, we have pulled back from there just a bit to show just how choppy this market is going to continue to be. At this point time, I think that we are still very much in an uptrend so we have to keep that in mind, but at the end of the day it looks like we may get a bit of noisy trading in order to build up the necessary momentum.

GBP/JPY Video 10.06.21

Another thing to pay attention to is the GBP/USD pair, as it continues to struggle with the 1.42 handle. The 1.42 handle is a major barrier for the British pound that needs to be conquered in order to push the British pound up against everything else. After all, the way to measure a currency’s strength overall is how it is doing against the greenback. Nonetheless, it certainly looks as if we are trying to get to the upside.

Underneath, the ¥153.50 level should also offer support as we have seen a big move to the upside from that level. I believe this continues to be a “buy on the dips” type of scenario as we are clearly trying to break out to the upside and continue the longer-term uptrend. That being said, keep your position size reasonable when waiting for your next move higher. If we do break higher, then the ¥157.50 level is the initial target, followed by the ¥160 level. I have no interest in shorting this market anytime soon, as it is very obviously bullish.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


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