British pound breaks through major uptrend line against Japanese yen

The British pound has broken down significantly during the day as it has been more of a “risk off” session, reaching as low as the ¥146 level. We bounced to test the previous uptrend line for resistance, and have found it, and it looks as if we are trying to fall from here. I suspect that the market will go looking towards the ¥145 level, but it may take some time to get there. There are a lot of concerns when it comes to the global markets right now, and that the Japanese yen strength has been due to Pres. Donald Trump suggesting that perhaps the situation between the United States and China has not necessarily been settled, so this has put a shudder through the markets globally. This has people buying the “safe currencies”, such as the Japanese yen.

I believe that the market will continue to offer a “sell the rallies” situation, and that should continue to be the case for the near-term as there’s nothing to get overly excited about. The ¥150 level has most certainly offered a massive amount of resistance, and it now looks as if the market will not be able to break above there anytime soon. If we did break above there, that would be a very bullish sign, but obviously the resistance has won the day. If we break down below the ¥145 level, this market is very likely to go looking towards the ¥140 level. You should also pay attention to the GBP/USD pair, as it has broken down. If it continues to fall, this market will by proxy.