The British pound slams up against the ¥150 level

The British pound chopped around against the Japanese yen during trading on Thursday, as the vital 150 level is just above. This was the previous uptrend line on the daily chart, and of course a large, round, psychologically significant number. If we can break above the recent highs, the market should continue to grind towards the 155 level over the longer term. The 155 level of course is a large, round, psychologically significant barrier, so I think it’s going to take a while to get through there. However, if we did, this pair would become a “buy-and-hold” situation.

The alternate scenario of course is that we break down a bit, and on a move below the 149 handle, I think we go much lower. This would probably coincide with some type of “risk off” event, which could be based upon trade war headlines or some type of financial incident. I think that the market continues to be very noisy and difficult, so I think that you will probably need to keep your position size small, at least until we get some type of clarity in this market that has been very difficult to deal with. I think that the market will eventually decide to go in one direction or the other, and I believe that if some type of conclusion to the trade war question, that could be reason enough for this market to rally.

Written by FX Empire