• As you can see, the British pound has been rather bullish against the Japanese yen during the trading session on Friday as we headed into the weekend on a positive note.
• At this point in time, I suspect you have a scenario where a lot of traders are trying swap at the end of the day.
• The 200-day EMA sits just above and is offering significant resistance, and I think that is something worth paying close attention to.

Ultimately, at this point in time, you have to be very cognizant of the fact that we have recently tested a major support level, and it now looks very much like a market that is trying to determine whether or not we can continue to climb. I think that's probably the case given enough time, but I also recognize that there is a lot of technical resistance just above. Not only at the 200 day EMA, but also the 50 day EMA and then the 195 yen level. In general, I like this pair. I just don't necessarily want to get overly exposed at this point.

Risk Appetite

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This is very sensitive to risk appetite, and therefore I think you have to be very cautious because as we've seen on Friday, Donald Trump is willing to play games in the media, and that has the computers trading back and forth in a wild fashion. So, with all of that being said, I think you've got a scenario where a lot of traders are going to be looking at this basically as the carry trade and hoping for a lot of sideways action. The 190 yen level underneath is the bottom, and the 200 yen level above is the top. Right now, we're closer to the bottom, so I'm more inclined to be a buyer, but again, not in huge, massive positions.

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