Over the last several sessions, this market has formed several shooting stars, so although it would be very impressive if they continue going higher, I think it is asking a bit much at this point. I anticipate that the market participants around the world will continue to look at this as a risk barometer, and quite frankly with all of the problems that we have with trade war situation, it’s good to be very difficult for this pair to rally for a significant amount of time.
I believe that eventually we will run into a bit of resistance that sells off, perhaps based upon short-term trading. I’m not looking for any type of meltdown, rather I am looking at this from a pragmatic standard, meaning that there is simply far too much risk out there for traders feel comfortable buying this very volatile and very risk sensitive pair. It would not take much out of the mouths of Chinese officials this in this pair much lower, and I suspect that things are about to get worse before they get better. However, I fully recognize that a move above the 147.50 level would be extraordinarily bullish. At that point, the trend will have changed more than likely, and should continue to go looking towards the ¥150 level.
GBP/JPY Video 09.07.18
This article was originally posted on FX Empire
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