The British Pound is attempting to prolong its push higher against the Japanese Yen, with prices probing above the 38.2% Fibonacci retracement at 168.05. A break higher above this barrier on a daily closing basis initially targets the 50% level at 169.35. Alternatively, a reversal below the 23.6% Fib at 166.45 exposes rising trend line support at 165.06.
Entering long seems premature absent confirmation of an upside breakout but a short position appears likewise unattractive without a defined reversal signal. Furthermore, the Yen's sensitivity clouded risk appetite trends warn against taking directional bets on fundamental grounds. We will continue to stand aside for now.