GBP/JPY Price Forecast – British Pound Continues Consolidation Against Yen
The British pound has fallen a bit during the trading session on Wednesday but has found buyers underneath the 50 day EMA. By doing so, we ended up forming a little bit of a hammer but at the end of the day we are heading into a major holiday in the United States, so liquidity may be an issue over the next couple of days. All things been equal, I believe that this is a market that is trying to look at the ¥152.50 level as a floor in the market, while the ¥155 level is a ceiling in the market. In the short term, I believe that the market will bounce around this 250 point range, but it is worth noting that the Japanese yen has been getting pummeled against multiple currencies, so this may have more to do with JPY than GBP.
GBP/JPY Video 25.11.21
If we break above the ¥155 level, then the market is likely to go looking towards the ¥157.50 level. On the other hand, if we break down below the ¥152.50 level, we probably go looking towards the 200 day EMA underneath, and that of course the ¥150 level. Anything below there would be a massive breakdown in this pair, but I do not see that happening in the short term. Quite frankly, you also have to keep in mind that this pair is somewhat sensitive to risk appetite, so clearly you have to pay attention to that as well. I would anticipate more hovering around the 50 day EMA over the next couple of days, as there are no real catalysts to get things going that I see in the short term.
For a look at all of today’s economic events, check out our economic calendar.