GBP/JPY Price Forecast – British Pound Continues to Face the Downward Pressure

The British pound has bounced from the 50 day EMA during the trading session on Thursday, as we continue to see a lot of noisy behavior. Ultimately, this is a market that will continue to move based upon risk appetite, as the Japanese yen is considered to be a safety currency. All things been equal, the ¥155 level above should offer a significant amount of a barrier, and therefore if we were to break above it, it would change the attitude of this market completely. It would be a complete breakout, and a lot of traders would get long of this market rather quickly.

GBP/JPY Video 19.11.21

On the other hand, if we were to break down from here, I believe that the ¥152.50 level continues to be crucial, as it is a previous resistance barrier. At this point, it should now be supportive, as “market memory” comes into the picture. With this being the case, I think it is only a matter of time before we see the potential of a serious break down and risk appetite overall if we were to get below that level. The ¥150 level underneath is what I considered to be the bottom of the overall uptrend, so if we were to break down below there, I think things could be rather ugly at that point in time, having this market break apart and more than likely we would see a lot of major “risk off” behavior around the world. One thing I think you can count on is a lot of noisy behavior, but that is typically how this pair behaves anyway.

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