British pound falls against yen only to find buyers again

The British pound initially fell on Thursday but found the 152 region to be supportive enough to turn around and rally again. When I look at the hourly chart, it seems as if we are trying to build up a bit of a basing pattern and show signs of the market trying to get towards the 153.50 level. Ultimately, if we can break above there the market should then go to the 155 handle above, which is structurally resistant. I believe that the market should continue to find plenty of reasons to go higher based upon risk appetite and of course the British pound overall strength.

I believe that it is going to take a significant amount of effort to break above the 155 handle, so it will take several attempts to make this happen. Once we do, I think that the market could go to the 160 level after that. I have no interest in selling this market, least not until we would break down below the 150 level, which is clearly offered massive support. Remember that this pair is highly sensitive to risk appetite, and if we continue to see stock markets show signs of life, and of course commodities can rally that should help this pair as well. Ultimately, I think that the market is ready to continue going higher for several years, as we have turned around the overall downtrend that we had been in for quite some time.