British pound find support against Japanese yen during the week

The British pound continues to be very noisy overall, and against the Japanese yen is spent most of the week falling. However, later on, specifically Thursday and Friday, we so buyers come back in and push this market to the upside. By doing so, we ended up forming a nice-looking hammer and I believe that the hammers should be a sign that the buyers might be returning. With this in mind, I think that the market may reenter a previous consolidation area.

By forming a hammer, it shows that we are more likely to find buyers than sellers, and I think it’s only a matter of time before we take advantage of what looks to be a significant attempt at consolidation. Remember, this pair is highly sensitive to risk appetite overall, so that of course will have a lot to do with where we go next. However, if we were to break down below the bottom of the candle that’s a very negative sign and could send this market looking towards the 140 level over the longer-term. I think the next couple of weeks going to be crucial for this pair, and geopolitical events will be the biggest drivers from what I see. There are many catalysts out there that could move this market, so keep that in mind. Expect volatility, but this could be a nice opportunity if we can get relative calm in geopolitics.