British pound rallies significantly against Japanese yen on Monday

The British pound rallied significantly during the trading session on Monday, reaching towards ¥149 level, an area that of course has caused a bit of support and resistance in the past, and I think that if we can break above that region, we can probably go to the ¥150 level next. That’s an area that of course has a lot of psychological importance, and in the past has shown a lot of importance obviously as these large round numbers attract a lot of inflow. If we can break above the ¥150 level, this market could rocket much higher.

I believe that in the short term we will probably continue to see buyers on dips, as we try to build up the necessary momentum to break out to the upside. The British pound has been rallying during the day on Monday, and longer-term as well. I think that as we have seen this market bounce from the uptrend line underneath as a clue that we will continue to find value hunters on dips. I think that if we break above the ¥150 level, then the ¥149 level will become a floor initially, with the market breaking the ¥151 level showing the ¥150 level as a floor next. If we do break down below the uptrend line, the market will more than likely go looking towards the ¥145 level rather rapidly as it would be a significant break of significant support. Expect volatility regardless.