British pound falls against Japanese yen during Friday

The British pound has initially try to rally on Friday but turned around the fall towards the ¥145.50 level. It looks likely that we will continue to go a bit lower though, as the highs continue to fall. I think that the ¥145 level will of course be attractive as it is a large come around, psychologically significant figure, but I also think that we could break down below there. If we do, the market could go down to the ¥142.50 level. Beyond that, the 140 and level would of course be a target. I don’t have any interest in buying this pair, because of the uptrend line above at the ¥147.50 level should continue to offer resistance. If we were to break above there, the market could then go to the ¥150 level above, which is even more resistive as far as I can see.

With geopolitical concerns the way they are, and of course the possibility of volatility in the stock markets, I think it’s easier to sell this pair than anything else. This is also heavily influenced by the GBP/USD pair, which is the benchmark for the British pound in general, which of course has an influence here. I think at this point, cell the rallies will continue to be the way to go, as I’m not expecting a meltdown, but I do expect more downward pressure.