GBP/JPY Price Forecast – British Pound Continues to Recover Against Yen

The British pound has rallied a bit during the course of the trading session on Tuesday as we continue to see this market going back and forth during the trading session. The market has seen a lot of resistance at the ¥153 level, with the support level underneath being at the ¥150 level and extending down to the ¥149 level. At this juncture, I think we are simply bouncing around and trying to find a reason to break out or break down.

GBP/JPY Video 06.10.21

The market has been bouncing around in this area for a while, so it does make quite a bit of sense that we would see an attempt to get to the top of the range. All things been equal, this is a market that I think continues to see a lot of noisy behavior, but ultimately it certainly looks as if we are trying to break down a bit, and therefore I think that the market will eventually make a serious attempt to break down below the ¥140 level. In fact, when you look at the longer-term chart, you can see that we have formed a bit of a topping pattern.

On the other hand, if we were to break above the ¥153 level, then the market is likely to test the ¥155 level, an area where we had seen a lot of bearish pressure previously. At this point in time, that seems very unlikely, but it is a possibility if we suddenly get a huge “risk on move” in the markets overall. In general, this market continues to be a great barometer for risk appetite.

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