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GBP/JPY Price Forecast – British Pound Continues to Find Basing Pattern at ¥150

By:
Christopher Lewis
Published: Dec 8, 2021, 14:51 UTC

The British pound has dipped slightly during the trading session on Wednesday to test below the ¥150 level again. Yet again, we have seen buyers come in to pick things up.

GBP/JPY Price Forecast – British Pound Continues to Find Basing Pattern at ¥150

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The British pound has initially dipped below the ¥150 level to show signs of weakness, but later on found buyers to support the market yet again. By doing so, it looks as if the market is going to continue to see buyers try to support this overall range between ¥150 and ¥149, which I think is becoming more and more important as time wears on. That being said, we need to take out the top of the candlestick from Tuesday to really start to pick up momentum to the upside. If we do break above there, then the market is likely to go looking towards the ¥152.50 level, where the 50 day EMA is currently parked at as well.

GBP/JPY Video 09.12.21

If we do break down below the ¥149 level, that could kick off a major “risk off” type of situation where this market melts down. I think we would go looking towards the ¥147.50 level rather quickly, and then the ¥145 level after that. While that is not my base case scenario, especially based upon what we have seen of the last couple of days, the reality is that it could happen. This will be especially true if we see a lot of trouble around the markets overall as this market is highly sensitive to risk appetite in general as the Japanese yen is considered to be a safety currency, so if we start to see a lot of problems in other markets, is very likely that we would see this pair break down. On the other hand if people will turn around and show signs of risk appetite returning, this pair could take off.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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