GBP/JPY Price Forecast – British Pound Continues to Decide on Direction
The British pound went back and forth during the course of the trading session on Monday as we had tested the 50 day EMA to pull back and form a little bit of a neutral candlestick. At this point time, the market looks as if the ¥152.50 level is going to continue to be massive support, and if we do break down below there, then it is likely that we could go much lower. If we break down below there, then it is likely that you could go looking towards the 200 day EMA underneath, maybe even the ¥150 level after that. The ¥150 level is a massive support level that extends down to the ¥149 level, so if we were to break through there, then the market could fall apart.
GBP/JPY Video 23.11.21
On the other hand, if we were to turn around and break above the 50 day EMA, then we could go looking towards the ¥150 level above, which is an area that has a certain amount of psychology attached to it. Keep in mind that this pair is highly sensitive to risk appetite, so I think that the currency pair will of course pay attention to things like the stock market, and bond markets. As long as we are “risk on”, the very likely that we will continue to find buyers on these dips. On the other hand, if we were to see a major “risk off” type of situation, then it is likely that we will continue to go towards that previously mentioned support area. To the upside, if we were to take out above the ¥155 level, then we could go much higher.
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