GBP/JPY Price Forecast – British Pound Continues to Stretch Higher

The British pound has rallied a bit during the course of the session on Wednesday as we continue to see the Japanese yen gets sold off a bit. At this point, the market is likely to see a significant amount of resistance just above, where the ¥153.50 level will be like a brick wall. If we break above there, then it likely means that we go looking towards the ¥155 level above which is a major round figure and of course a major resistance just above.

GBP/JPY Video 12.08.21

On the downside, the ¥152.50 level should offer support and if we were to break down below there, it could send this market down to the ¥151.50 level. After that, then the market would go looking towards the ¥150 level, an area that had shown itself to be important in the past. Quite frankly, this is a market that continues to be volatile, but it is not a huge surprise considering that the pair is so sensitive to risk appetite and of course we have no idea where risk is going to be at this point.

I believe at this point the market is going to continue to be very difficult to hang onto, so I would be very cautious about my position sizing, because quite frankly this could turn around quite quickly, but as we are in the quietest time of the year it is possible that that we simply grind and chop back and forth, perhaps in a bid to destroy as many accounts as possible. Keep that in the back of your mind, because quite frankly the markets could be somewhat dangerous.

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