The British pound started the day with a higher gap against the Japanese yen, but quickly turned around and fell. However, the gap was filled and the pound showed signs of strength afterwards. The ¥200 level is crucial in this market, with many keeping a close eye on it. Breaking above this level could lead to further gains.
There is strong support below in this market, with buyers taking advantage of the large interest rate differential. Until the Bank of Japan changes its monetary policy, the Japanese yen is not expected to strengthen. The Bank of Japan’s interest rate decision on Friday may cause some volatility in the market.
It is wise to buy on dips in this market, as the trend is favorable. Breaking above the recent highs near the ¥102 level could signal a longer-term buying opportunity. Short-term support is around the ¥197 level, with the 50-Day EMA providing additional support. Volatility is common in this market, so caution is advised when determining position size.
Overall, traders are likely to continue seeking value in this market and taking advantage of opportunities as they arise.