The British Pound vs Japanese Yen Technical Analysis
The British pound experienced significant selling pressure during Monday’s trading session, dropping towards the ¥160 level. A break below ¥160 could lead to a further decline towards ¥157.50, a key support level in the past.
The market is highly influenced by risk appetite and interest rate movements, particularly as the Bank of Japan defends the 50 basis point level in the 10-year yield. While there is a lot of noise in the market, ¥160 may provide some support.
Recent fluctuations in risk appetite have led to choppy trading behavior. Breaking above ¥162.50 could pave the way for a move towards ¥165, and potentially even to ¥167.50 where selling pressure has been observed previously.
Traders are likely to see more back-and-forth movements in the near future. Despite a bearish candlestick on Monday, some traders may look for buying opportunities within the established trading range that has persisted for about a year. Patience is key in navigating this market.
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This article was originally published on FX Empire.