GBP/JPY Price Forecast – British Pound Continues to Build Base Against Japanese Yen

The British pound has initially fallen during the trading session on Tuesday but continues to see a significant amount of support near the ¥152.50 level, which of course is a significant previous support and resistance barrier, and since we broke above there it is likely that we will continue to see market memory come into play. Furthermore, the market had recently had a major sell off due to the Bank of England choosing not to taper bond purchases. That was negative for the British pound across-the-board, but we are now starting to see a little bit of support come back in, perhaps allowing the Pound to recover.

GBP/JPY Video 10.11.21

If we were to break down below the ¥152 level, then the market could very well go looking towards the ¥150 level, but that would be a significant break down risk appetite, so therefore it is very likely that we need to see the markets in general fall apart. That being said, the market is likely to continue to see more of a general attitude to the upside than anything else, and therefore I think as long as we do not have some type of major selloff and risk appetite around the world, I do think it is probably only a matter of time for this market recovers. That does not mean that is going to be easy, just that we are forming what looks a lot like an accumulation pattern, so unless the British pound gets sold off rather intensely, it is more than likely going to continue to be a market that shows plenty of lively trading.

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