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If the GBP/JPY pair pulls back further, it could go down to the ¥157.50 level, which was previously supported.
- On Monday, the GBP/JPY initially rallied but then pulled back toward the ¥159.10 level.
- This highlights the market’s current volatility and noise, which is affecting the GBP/JPY trading pair.
- After all, the Japanese yen is a safe currency, but at the same time, we also have the yield curve control that the Bank of Japan is currently undergoing.
The yen is a popular asset during turbulent times.
This pair is highly sensitive to risk appetite, which is all over the place right now due to the recent bailout of a major Swiss bank. Additionally, there are many other concerns that traders are monitoring, which could further impact risk appetite. The fact that so many central banks came out at the same time and tried to calm the markets will make some people nervous.
The current market environment is making it difficult to make informed trading decisions for the GBP/JPY pair. It’s essential to trade this pair through the prism of risk appetite, and traders should expect a lot of volatility and headaches while dealing with it. The only way to combat this is to either step to the sidelines or keep your position sizes reasonable.
If the GBP/JPY pair pulls back further, it could go down to the ¥157.50 level, which was previously supported. If it breaks down below that level, the market could fall to the ¥155 level. However, if it breaks above the moving averages, then the pair could test the ¥162.50 level and potentially move up to the ¥165 level, which was significant resistance.
Traders should remain cautious and keep position sizes reasonable as volatility seems to be increasing. It’s important to stay informed and adjust trading strategies to the market’s changing conditions to make the most profitable trades. After all, the volatility is picking up not only in this pair, but almost everything else.
The GBP/JPY pair is just one example of the market’s current uncertainty, which is affecting many other trading pairs, as well as unrelated markets. In such an environment, it’s crucial to monitor broader economic indicators and global events to make informed trading decisions.
Ultimately, the British pound is facing volatility and risk appetite in the current market. The GBP/JPY trading pair is highly sensitive to these factors, making it challenging to make informed trading decisions. Traders should stay informed, adjust their trading strategies to the market’s changing conditions, and monitor broader economic indicators to make profitable trades.
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