If we were to break down below the bottom of the shooting star, we will probably go looking toward support underneath, near the bottom of the candlestick, which is right around the ¥181 level. That’s assuming that we can even drop that far. With that being said, I think we got a scenario where the market will continue to be noisy, and of course you have to keep in mind that the pair does tend to be very sensitive to risk appetite, rising and falling right along with it.
In general, I think this is a market that continues to see a lot of noisy behavior, but with that being said, I think you have to look at this through the prism of a market that is consolidating after a huge run higher earlier this year. With this, I’m a buyer of dips, but if we were to break above the ¥187 level, it would send this market much higher, perhaps allowing the British pound to finally reach the ¥190 level, followed by the ¥200 level before it’s all said and done.
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