The British pound falls against Japanese yen

“The Dragon” is probably one of the most volatile pairs that we cover here at Eracash. The market is highly sensitive to risk appetite, so keep that in mind. Pay attention to the stock markets and commodity markets, because they can give us an idea as to where risk appetite is going. If risk appetite continues to climb, then this pair will as well. The other scenario of course is that the British pound has taken a bit of a bashing as of late, and if it continues to fall against other currencies, that should also put bearish pressure here. At the very least, it will keep this market from rallying is much as other Japanese yen pairs might.

If we break down below the 149.50 level, the market should then go to the 149 handle, and then the 148 level. That would be very negative move and could open the door for longer-term selling. The alternate scenario is that we break above the 151 handle, which shows that the bullish attitude is coming back, and the risk appetite is picking up, which should send this market much higher, to at least the 153 level, perhaps even the 155 handle over the longer term. I believe this pair will be very interesting to pay attention to, as it gives us more of a pure play on the overall attitude of traders. Currently though, it looks as if we are favoring the downside so be aware of this going forward.