British pound has volatile day against Japanese yen on Thursday

The British pound has been very noisy against the Japanese yen during the session on Thursday, reaching down towards the ¥149 level. That’s an area that has previously been resistance, and I think that a short-term pullback could be a buying opportunity if we can hold the ¥149 level. If we break down below there, I think there is a significant amount of support down to the ¥148.50 level. However, I recognize that the ¥150 level above is going to be massive in its importance, so I think that short-term pullbacks are probably buying opportunities. I don’t know that I would jump in at these lofty levels without some type of pullback to give us an opportunity to build up momentum.

Another opportunity may present itself if we get a daily close above the ¥150 level, especially if it’s about 25 pips above. That would be a significant break of resistance, and we should continue to go much higher from there, initially trying to reach the ¥152 level, and then eventually after that looking towards ¥155 level. Keep in mind that this market is highly sensitive to risk appetite, so pay attention to world global markets. If stock markets rally, that typically is reason enough for this pair to rally as well. However, if they fall significantly, that could show a “risk off” attitude, which would send this pair lower.