Created on December 26, 2024

Bạn đang xem: Gives Up Early Gains (Video)

• The British pound initially did try to rally during the trading session on Tuesday, but gave back gains and we are essentially closing pretty much flat.
• It does make a certain amount of sense that the market would do very little as we are facing a cluster of resistance.
• This is an area that I think would continue to be a massive barrier and headache unless we get a lot of yen selling across the board.

Xem thêm : The “ King Dollar” is back in the spotlight

The fact that the liquidity wouldn’t have been there comes into play as well. That being said, despite the fact that the British pound isn’t necessarily a currency I love, it’s not the worst one out there. And the worst one out there might actually be the Japanese yen, maybe the Swiss franc. It’s kind of a tossup at this point. You could even throw the euro into that group.

Big Support Level Under Here

So, I do think then if we get a little bit of a pullback, it’s probably worth paying close attention to the ¥195 level, which is an area that’s a large round, psychologically significant figure, an area that’s seen some market action previously. And an area that the 50 day EMA is rapidly approaching. If it can break above the ¥195 level, then the short term technical flaw will just simply move up with that 50 day EMA.

On the upside, we have the ¥200 level, which has been like a brick wall for the British pound. But if and when we finally break above there, it’s likely that we would see this GBP/JPY pair really start to take off to the upside, perhaps driving the British pound all the way up to the ¥208 level, which of course was the recent swing high. I have no interest in buying the yen, which means I have no interest in shorting this pair.

Want to trade our daily forex analysis and predictions? Here’s a list of forex brokers in Japan to check out.