On Tuesday, the British pound attempted to rise above the ¥168 level but ultimately fell due to the ongoing noise in the market. It appears that the market is currently experiencing a "risk off" trend, where investors are less willing to take on risky investments. While buyers may be present at lower levels, it's important to be aware of the key areas to watch.
One such area is the ¥165 level, which could be a potential buying opportunity if the market tries to find buyers in that range. It's important to note that the Friday candlestick rebounded significantly from this level, which suggests that it could be an important support level to keep an eye on.
However, the market remains volatile, and there are a variety of factors that are influencing price action. To understand the market better, it's essential to consider whether it's taking on a lot of risk. If it is, then it's likely that the British pound will continue to rise against the yen.
GBP/JPY could go to a more momentum buying
On the upside, breaking above the recent "micro double high" at the ¥168 level could open up the possibility of a move to the ¥169.50 level, where there has been significant selling pressure before. If the pair continues to rise above this level, it could break through the ¥170 level, which is a psychologically significant figure that could attract a lot of attention and lead to more momentum buying.
Overall, the market remains uncertain, and there are many fluctuations happening at the moment. However, there are still buyers present in the market, and investors are looking for signs of value as they occur. It's essential to stay vigilant and watch for potential opportunities to enter or exit the market. After all, this pair tends to be very volatile, and has a lot of external influence on it as well. Either way, it certainly looks very bullish longer-term.
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