- The British pound initially fell a bit during the trading session on Wednesday, only to see buyers at the same place again. This market continues to show resilience, and stability, despite the noise in the markets overall.
GBPJPY
The British pound initially fell a bit during the trading session on Wednesday but continues to see the 210 yen level as an area of support. I like this pair a lot, and I do think that it is probably only a matter of time before we start buying again.
Short-term pullbacks offer enough value that I definitely like watching for a bounce that I can take advantage of the continued longer-term uptrend. The 215-yen level is an area I would be watching as well.
Market Resilience and Technical Indicators
As a side note, the United States government has come out and explicitly denied any intervention in the Japanese yen, so we will see how that plays out. The US dollar against the Japanese yen has been hammered, but in that same time frame, we have only seen the British pound test the bottom of the recent consolidation.
I think this is a sign that this pair is going to remain rather resilient. The 50-day EMA sits just below the 210-yen level as well, so I think all of this comes together to offer value each and every time we drop.
If we can break above the 215-yen level, that really gets this pair going, but I think in the short term, this is a buy the dip, maybe sell the rip type of situation where we take advantage of a well-defined 500-point range. If we were to break down below the 50-day EMA, then we might have to reset closer to 208. This is a level that I would be very interested in as well.
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