Yahoo Finance The British pound falls against Japanese yen during Thursday session
This is a pair that is highly risk sensitive, and we have seen a lower than anticipated CPI figure in the United States to have people worry about risk appetite. However, I think this is a minor issue, and the reality is that we are going to pay attention to the GBP/USD pair for an idea as to where this market may go. It is currently testing a major uptrend line as well, so we need to see whether that market breaks down significantly, because if it does this pair probably reaches down to lower levels as well. Otherwise, if the GBP/USD pair rally takes off, it could rally this market as well. That will be especially true if the USD/JPY rallies at the same time.
Volatility in this pair of course picks up when there is a lot of uncertainty in the markets, and I think there is a bit of that right now, but at the end of the day I believe that this pair will follow the British pound overall, which has been a bit noisy to say the least. Beyond that, we have a couple of central banks involved in this currency pair that are going to keep interest rates low for a very long amount of time, but I believe that the British are closer to raising rates than the Japanese, so overall that should suggest that we might be able to rally. If we break down below the 147.25 level, then I think the sellers pylon. Otherwise, we may try to grind towards 150.
GBP/JPY Video 11.05.18
This article was originally posted on FX Empire
