Advertisement
Advertisement

British pound falls against Japanese yen in early Wednesday trading

By:
Christopher Lewis
Updated: Apr 19, 2018, 04:50 UTC

The British pound fell against the Japanese yen in early Wednesday trading, dropping down to the 152.00 region. We did bounce from there quite significantly though, and although this has been a very negative turn of events, I think looking around the Forex world, the British pound is trying to make a stand.

GBP/JPY daily chart, April 19, 2018

The British pound initially drifted sideways early during the trading session on Wednesday but found plenty of selling pressure as we broke through the 153 handle, reaching down towards the 152 level. We did get a bounce from there, and by the time the Americans jumped on board we had recovered 50 pips worth of losses. I anticipate that this market will continue to be very noisy, it typically is. However, it looks as if the Bank of England is still on track to raise interest rates, regardless of deflationary fears. That of course is good for the British pound itself, and therefore I think we will see a recovery given enough time.

I currently recognize the 150 level as a significant “floor” in the uptrend, so if we can stay above that level, I’m looking for buying opportunities. Short-term bounces, or perhaps even a continuation of the upward momentum that we had seen after the significant fall, could be reasons enough to put money to work. Remember that this pair is highly sensitive the global risk appetite, so pay attention to what stock markets are doing around the world. I believe that eventually we should see this market reach towards the 153.75 level again. In might take a bit of work, but certainly there seems to be buyers underneath. At the first hint of positivity in the world’s financial markets, this pair tends to rise.

GBP/JPY  Video 19.04.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement