The British pound has been quite volatile against the Japanese yen in trading on Monday. It initially rose before struggling to hold onto gains and then dropping significantly. Since then, it has bounced back about 300 points, causing headaches for many traders.
GBP/JPY is a market that is becoming increasingly unpredictable, with volatility expected to continue rising. Despite this, the current trend remains positive. It is important to be aware of this trend and not take excessive risks. Dips in the market may present opportunities, but caution is advised. The 50-day EMA around the ¥191 level could provide support.
If the market falls to that level, it may be concerning but could also help remove speculative money from the market. Overall, I remain cautiously optimistic and bullish. This market is noisy but still bullish in the long run. There are likely value hunters looking to capitalize on potential short squeezes.
In the future, we may see the market reach recent highs and possibly go even higher. The Bank of Japan’s limited ability to tighten monetary policy due to the country’s high debt levels could play a role in this. Traders should consider these factors when making trading decisions.
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