GBP/JPY Price Forecast – British Pound Continues to Hover Around ¥150

The British pound has gone back and forth during the course of the trading session on Friday, as we continue to hover around the ¥150 level. It is obvious that the ¥150 level is essentially a bit of a magnet for price right now, so should not be a huge surprise to see that we are sitting here. With that being the case, the market continues to see a lot of interest in this area, especially as the ¥149 level has been so supportive, as it is the bottom of this overall “range of support.”

GBP/JPY Video 13.12.21

To the upside, if we can break above the 200 day EMA, then the market is likely to go looking towards the ¥152.50 level. The ¥152.50 level has a certain amount of interest attached to it due to the fact that it has been both support and resistance in the past, but it is also where the 50 day EMA is currently sloping down towards. In other words, these are levels that I am watching but I also recognize that this pair has a certain amount of risk premium built into it at times, due to the fact that the Japanese yen is considered to be a major safety currency, so when times are tough, this pair collapses.

It is in that vein that you always have to watch the markets in general to get an idea as to what this point should do. Looking at this chart, I think that the market is more likely than not just going to hang around in this area, especially as we are heading towards the end of the year and liquidity becomes an issue.

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