GBP/JPY Price Forecast – British Pound Bounces From Crucial Area

The British pound has rallied a bit during the course of the session on Monday, bouncing from the ¥152.50 level. This is an area that of course is a significant area that we had seen a lot of resistance at previously, so it does make a certain amount of sense that we would see it offer some resistance. That being said though, the market was to break above the 50 day EMA, then I think the market goes looking towards the ¥155 level. All things been equal, this is a market that desperately needed a pullback and with the Bank of England choosing not to taper its bond purchases last week was the excuse the market use.

GBP/JPY Video 09.11.21

At this point, I do think that the market is likely to continue seeing a little bit of noisy trading, but as long as we can stay above the ¥152.50 level, I do think that you have to look at this as a potential “buy on the dips” chart on short-term time frames. If we were to break down below the ¥152.50 level, then we have to ask questions as to whether or not the trend can continue? If we break down below the ¥150 level, that probably ends the overall uptrend. That being said, even though we have had a significant pullback, I still look at this through the prism of a market that has been in an uptrend for quite some time. This is a matter of finding a bit of value, and now it comes down to whether or not risk appetite can drive this pair to the upside. Clearing the ¥155 level would be a very strong sign.

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