GBP/JPY Price Forecast – British Pound Continues to Hang Around the ¥150 Level

The British pound has rallied a bit during the trading session on Friday, as the ¥150 level continues to be supportive. Ultimately, this is a market that I think continues to struggle with the idea of the 200 day EMA above, which attracts a lot of attention. Furthermore, it is the end of the year so volatility could be a bit of a question as well because volume will not be part of the equation. That being said, it is worth noting that we are tightening up, so we may be getting ready to make one last big move between now and the end of the year, which should be evident by a long candle.

GBP/JPY Video 15.12.21

If we were to break above the top of the recent consolidation and the 200 day EMA, then it is likely that we go looking towards the ¥152.50 area where the 50 day EMA is hanging about. On the other hand, if we break down below the ¥149 level, then it is likely that we could go looking towards the ¥147.50 level. After that, the market then goes looking towards the ¥145 level.

Keep in mind that this pair is highly sensitive to risk appetite, so we will have to see you how that plays out over the next couple of weeks but clearly, we are at an area that is crucial support from a longer-term standpoint. The question now is whether or not this pair will save itself? I suspect we will know sometime in the next week or so, and it could be a relatively obvious play as to which direction we go next.

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