British pound jumps against yen – Archyde

the British pound recovered quite significantly during Wednesday’s trading session as we broke the 50-day EMA again and await the FOMC. Honestly, this is a high risk situation that will most likely cause a lot of pain for traders as we don’t know exactly where we are going due to our risk appetite. The Federal Reserve will most likely have a major impact on what happens next and of course risk appetite in general. At this point we have a lot of short covers at this point so it makes perfect sense that we will see a small bounce.

GBP/JPY-Video 27.01.22

I will short this pair at the first sign of exhaustion, especially if it is anywhere near the ¥155 level. This is an area that has received a lot of attention and as such I think this could be a good shorting opportunity if we get the right hawkishness from the Federal Reserve. That being said, if we break above 155 yen on a daily close, then it’s likely that we’ll see the market race towards the highs, perhaps based on the Federal Reserve “blinking” signs of trouble, which certainly the case would come.

Reference-www.nach-welt.com

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