GBP/JPY Price Forecast – British Pound Continues to Pressure to Hundred Day EMA

The British pound initially pulled back during the trading session on Monday to reach down towards the ¥150 level, where we found a bit of support yet again. That being said, the market reached towards the ¥150.75 level above. The 200 day EMA above is currently flat, and it looks as if we are waiting to see whether or not we can finally get above there. If we could, then obviously that would be a very bullish sign and could open up a move towards the ¥152.50 level.

GBP/JPY Video 14.12.21

If we do not get the move to the upside, then it is very likely that we go sideways and try to consolidate back and forth in this general vicinity. Keep in mind that this pair is highly sensitive to risk appetite, and therefore you should probably keep a close eye on what the markets in general are doing. If we see the markets in general show a lot of “risk on” behavior, then that will help this market rally at this point in time. On the other hand, if we start to see risk appetite fall apart, that will almost certainly drive people into the Japanese yen or safety.

I think the only thing you can count on will be a lot of noisy behavior, and therefore this is a market that is probably best kept in small increments, because quite frankly you cannot go “all in” into the pair at the end of the year unless of course we have some type of clear directionality. At the moment, we do not seem to have that.

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