Sterling continues to consolidate against the Japanese yen
The British Pound moved back and forth again during Thursday’s trading session against the Japanese Yen as we continue the same consolidation we have been in for two weeks. This is not a huge surprise, given how parabolic the market had been, so the question now is whether or not we are simply consolidating before making a bigger move, or whether we are in a “consolidation phase”. delivery”?
GBP/JPY Video 14.01.22
If we are in a distribution phase, a drop below the ¥155 level would certainly confirm this, and we would likely see a repeat of the last time we went parabolic, which means we could go down to the ¥155 level. ¥150. . Keep in mind that this pair is very sensitive to risk appetite, which also comes into play. By observing other markets, you can get an idea whether or not this market should go up or down.
Alternatively, if we can break above the ¥158.50 level, that clears any resistance and sends this market much higher and likely more of a parabolic “buy and hold” situation where we look to the ¥160 level pretty quickly. I don’t necessarily like this move, at least not without knocking out a lot of the foam we’ve seen over the past two weeks. Frankly, I even like the idea of buying a pullback closer to the ¥155 level, as that is my “line in the sand” as far as this pair is concerned. All things being equal, you will need to be careful in the next two sessions.
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