British pound has noisy day against Japanese yen on Thursday

The British pound was very noisy against the Japanese yen during trading on Thursday, as word got out that the British would be leaving the customs union once they left the European Union as well. I suspect that a lot of this would have been algorithmic trading, because quite frankly most people don’t understand what that would involve. I believe that the machines read the headlines and reacted more than anything else. Overall, I believe that the uptrend continues, as we have seen a bit of a bounce and when you look at the chart we have taken back most of the losses that were suddenly realized.

In general, I believe that this market continues to be very noisy and reaches towards the ¥150 level eventually, that’s assuming of course that we don’t have some type of geopolitical problem or shock to the worlds headlines that could have people looking for safety. I believe that it’s only a matter of time before the buyers get involved on dips, and I believe that there is a massive amount of support closer to the ¥145 level underneath. Overall, I believe that we will see this market reach higher, especially if we can get away from talks about trade wars, as this pair is so highly sensitive to markets around the world and of course risk appetite in general.

GBP/JPY Video 08.06.18

This article was originally posted on FX Empire

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