GBP/JPY Price Forecast – British Pound Continues to Pressure Upside Against Yen
The British pound has gapped lower to kick off the trading session on Friday, but then turned around to show signs of life again. By doing so, this does suggest that we are more likely than not going to make an attempt to break out and go looking towards the ¥155 level eventually. Whether or not it can happen in the short term is a completely different question, because you have to wonder about liquidity and whether or not there will be enough traders out there to push this issue. To the downside, I would anticipate that the ¥152.50 level will almost certainly be an area of support and interest, so I would be very interested in some type of bounce from there.
GBP/JPY Video 27.12.21
Keep in mind that this pair is highly sensitive to risk appetite around the world, as the Japanese yen is considered to be a safety currency, and this pair can really take off in good times. If we get continued risk-taking out there, then I think this could completely change the entire trend of this pair. Needless to say, this has been a bit of a headache to trade lately, you can see where we been thrown around violently in multiple different directions, so keep that in mind you are trying to trade it. I would be very cautious about my position size, because this pair is especially vulnerable to massive spikes in illiquid markets. That being said, I think the real move will happen in January when everybody comes back to work. I would anticipate choppy and erratic behavior for the next several sessions.
For a look at all of today’s economic events, check out our economic calendar.