The British pound is expected to remain volatile against the Japanese yen, with attention focused on the ¥200 level. This round number often serves as a marker for market direction. While caution is advised in the short term, it is likely that the recent high near ¥200.80 will be surpassed, leading to a potential move towards ¥202.
It is not recommended to short this market due to its strength. Pullbacks present buying opportunities, particularly around the 197.6 level which has previously acted as resistance. The 50-day EMA is near 195.88, with support levels extending down to 190.
The market closely monitors interest rate differentials, which currently favor the British pound. Traders receive daily payments for holding long positions in this market. Despite upcoming jobs data, Friday’s volatility may offer another chance to enter long positions in this reliable uptrend.