The British pound fires off soft candle against yen for the week

The British pound initially tried to rally against the Japanese yen during the week but got absolutely hammered on Friday. We are sitting on top of the 150 level, an area that should be somewhat supportive, due to the psychological nature of the figure. I believe that the uptrend lines underneath should continue to offer support, and because of this I believe that longer-term traders will look at that move as a bit of value. However, if we were to break down below the uptrend lines that I have marked on the chart, that could be extraordinarily negative. If that were to happen, I’m not even sure where we would end up, I just know that it would be much, much lower.

Alternately, if we can break above the top of the shooting star for the week, the GBP/JPY pair should go looking towards the 155 level above. That’s an area that has been resistive recently, but after this past week’s candle, I am starting to become a bit concerned with this pair. I think the next couple of weeks ago to be very noisy, but they could be very lucrative if we get a nice signal.