- The GBP/JPY has taken a bit of a hit in Wednesday's trading session, as it broke below the ¥170 level again.
- However, the market is likely to see a lot of buying pressure underneath, and it is only a matter of time before it turns around and heads back up.
- The market is expected to continue experiencing volatility, but after the massive upward shot, some pullback is necessary to offer value.
Traders should be patient and wait to see if there will be a supportive-looking candlestick. The ¥169 level is an important area, and if the market turns around and shows signs of strength, it is likely to be important once again. The 50-Day EMA sits at the ¥165 level, and it is expected to be the technical analysis version of a floor, with many traders paying close attention to it.
The Market is Expected to See a Lot of Buying Pressure Underneath
- If the market turns around and breaks above the recent high, then the British pound is likely to continue surging toward the ¥175 level. Conversely, if it breaks down below the ¥165 level, it could be a significant downturn.
- The Bank of Japan has been keeping interest rates low, which is likely to cause negativity in the Japanese yen, and traders are expected to continue buying other currencies against it.
- Additionally, inflation has been strong in the United Kingdom, which is likely to keep upward pressure on the British pound.
Ultimately, the British pound has fallen a bit in recent trading sessions, but the market is expected to see a lot of buying pressure underneath. Traders should be patient and wait for a supportive-looking candlestick. The ¥169 level is an important area that could provide support if the market turns around and shows signs of strength. The 50-Day EMA at the ¥165 level is expected to be a technical analysis version of a floor, with many traders paying close attention to it. If the market breaks above the recent high, it is likely to continue surging toward the ¥175 level. However, if it breaks down below the ¥165 level, it could signify a significant downturn. The Bank of Japan's continued policy of keeping interest rates low is likely to cause negativity in the Japanese yen, and inflation in the United Kingdom is likely to keep upward pressure on the British pound.
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