GBP/JPY Price Forecast – British Pound Continues Noisy Behavior Against Yen
The British pound has gone back and forth during the course of the trading session on Thursday, as we hang around the 50 day EMA. We are Currently bouncing around in a 500 point range, with the ¥152.50 level being support, and the ¥155 level above being resistance. Currently, it looks like we are going back and forth in order to establish this range and perhaps build up momentum in order to go higher or lower.
GBP/JPY Video 26.11.21
If we break down below the ¥152.50 level, then it is likely that we go looking towards the 200 day EMA, perhaps even down to the ¥150 level. This obviously would be more or less a “risk off” type of move, which would be seen in model markets. On the other hand, if we were to break above the ¥155 level, then it is likely that we could go looking towards ¥157.50 level above, as it looks like we are going to see that as the next target due to the fact that we had pulled back from there. Regardless, you should keep in mind that the 50 day EMA is rather flat, so that does suggest that we are probably going to see this as a sideways market in the short term.
The last couple of candlesticks have been hammers, so I would anticipate that there is probably enough support underneath, and therefore I am thinking moving higher is probably likely, but not necessarily due to the British pound, due to the fact that the Japanese yen has been absolutely crushed recently. With this, I have a little bit of a bias, but I also recognize that we have a major range to break out of.
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