• In my daily analysis of the British pound against the Japanese yen, it's easy to see that we have seen a massive turnaround.
• At this point in time, it looks like the market is going to continue to see more of a buy on the dip behavior and buying on the dip, of course, has been the way to play this market for quite some time.

With that being the case, you should also keep in mind that the market has an interest rate differential that a lot of people will pay attention to. After all you get paid quite nicely for, um, holding on to the pound against the yen. The Bank of England does have an interest rate decision in the next week or so. So that could come into play, but quite frankly it's a situation where the bank of Japan just can't do anything, although they may have been instrumental in part of the falling, if you will, of yen related pairs due to the fact that there has been a lot of negativity out there and then the Bank of Japan tends to pounce on that when they get the opportunity.
 

In the end…

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Either way, I think as long as we can stay above the 50-day EMA underneath and the 200 level, this remains a market that is still very much in an uptrend. And although it has been somewhat vicious on the way down, the reality is that it is still very much in an uptrend. So, with this, I am looking for momentum to the upside to jump on until then, I'm just going to be sitting on the sidelines and waiting for the value play to present itself yet again. Don't feel rushed to get into the market, but I do think that if we can break above the 204 yen level, it's likely that this pair will continue to climb higher.

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