The GBP/JPY pair fell during the bulk of the session on Thursday, but later in the day we saw the Japanese yen selloff in general, and as a result this pair rose right along with the USD/JPY pair. The candle as you can see is a nice-looking hammer, and as a result I believe that the 172 level should offer buying opportunities for those who can handle the volatility. I don’t know that we can break out from here though, because we have to get above the 172.75 level in order to feel as if we have broken out. I also think that there is a significant amount of support all the way down to the 170 handle, so really at this point in time I’m not interested in selling anyway. I think that any supportive candle between here and there is an opportunity to buy as well.
This is about the Japanese yen, not the British pound.
This is about the Japanese yen in my opinion, not necessarily the British pound. After all, the British pound is in exactly look very strong at the moment. However, the Japanese yen did selloff in general overall during the latter part of the Thursday session. With that being the case, I feel that the market is more or less selling off the Yen, and this is just a byproduct of it. This is a market that does tend to move quite quickly though, so I am planning on trading small positions because of the possibility of massive profit and loss swings.
The candle is a perfectly shaped hammer though, so I do think that the buyers are going to take over sooner or later. The real question is whether or not they can do it here? I think that ultimately they will, and as a result if you have the ability to hang onto the volatility, this might be more or less a decent investment. Don’t expect an easy move, but it does look like the buyers are starting to reenter the market based upon the sideways action we’ve seen over the last couple of sessions.