GBP/JPY Price Forecast – British Pound Continues to Hang In Same Range

The British pound has gone back and forth around the ¥150 level for several sessions in a row, and it now looks as if we are likely to see a hovering of the pair right around this range. Underneath, the 50 day EMA is reaching towards the ¥149 level, so I think there is a zone of support that should come into play. The 50 day EMA of course is a technical indicator that a lot of people pay attention to, so if we were to break down below there, it is likely that the market goes looking towards the ¥145 level.

GBP/JPY Video 16.04.21

To the upside, the ¥153 level has been tested previously, and if we break out above the recent consolidation area, then it is likely that we could go higher. Ultimately, this is a market that I think is trying to figure out where we are going to far as risk appetite is concerned, and quite frankly this market has been overdone for a while, and now it looks as if we are chopping back and forth in order to either build up some type of momentum and stability in order to go long. At this point in time, markets will continue to be noisy and therefore I think you will have to be very cautious about jumping “all in”, but over the longer term we are still in an uptrend until we break down below the ¥145 level. All things been equal, I think that you need to see an impulsive candlestick in order to get involved. Over the last week or so, we have simply been “chopping wood” and killing time.

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