GBP/JPY Price Forecast – British Pound Continues Same Consolidation

The British pound initially dipped just a bit during the trading session on Thursday but then turned around to show signs of strength. We are currently sitting just below the ¥154 level, but the real prize is the ¥155 level above, which is a major barrier on higher time frames. Furthermore, there is an extension of resistance all the way to the ¥156 level, so it is really not until we break above there that it is likely that we will see this market take off. If that does happen you know, we probably will see an attempt to get towards the ¥160 level.

GBP/JPY Video 02.07.21

To the downside, the ¥152.50 level offers short-term support, while there is even more support to be found underneath at the ¥151.50 level. When you look at the larger timeframe, you can see that the ¥150 level is more than likely going to offer massive support so therefore I think that the market is essentially trading in this overall range trying to figure out where we go next. Because quite frankly, if we were to drop down below the ¥150 region, it is very possible that we could see this market break down drastically, perhaps even changing the overall trend.

Keep in mind that the British pound/Japanese yen pair is highly sensitive to the overall risk appetite around the world, so that is something that needs to be paid close attention to. Take a look at the overall attitude of markets worldwide, and that can give you a bit of a “heads up” as to where this market will go over the next couple of sessions.

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