GBP/JPY Price Forecast – British Pound Continues to go Sideways

The British pound has gone back and forth during the course of the trading session on Friday as we continue to hang about the ¥153.50 level. This is an area that has been important multiple times, and now it looks as if the market is trying to figure out which direction it wants to go next. With that being the case, it is important to pay close attention to the next impulsive candlestick, because it could give us an idea as to where we go next.

GBP/JPY Video 05.07.21

To the downside, the market has plenty of support near the ¥150 level to attract a lot of attention. Because of this, the market is likely to see a lot of buyers in that area, and I believe that the support extends all the way down to the ¥149 level, meaning that if we were to break through all of that it could be a major trend change. To the upside, we see significant resistance at the ¥155 level that extends to the ¥156 level, that could open up moves for much bigger Drive higher.

Ultimately though, this is a very unlikely scenario in the short term, because quite frankly we need to see a massive “risk on move” in order to make this pair rally like that. Quite frankly, the market seems a little bit too concerned at this point to see that type of move. I think the next several months will probably see this market bang around in this 500 point range that I have marked on the chart, as there just is no real conviction in anything.

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