GBP/JPY Price Forecast – British Pound Continues to Test Significant Support Region

The British pound has pulled back a bit during the course of the trading session on Thursday as we continue to test the same support region that we have for quite some time. Because of this, I would anticipate some type of bounce, but it does not necessarily mean that it is going to be easy. Quite frankly, I think this market will jump up and down with the idea of risk appetite, which of course is something that you need to pay attention to anyway. In general, the market seems to be trying to consolidate just below the 200 day EMA, which sits near the ¥151 level. If we can break above that indicator, it is very likely that this market will continue to go much higher, perhaps reaching towards the ¥152.50 level.

GBP/JPY Video 10.12.21

Breaking down below the ¥149 level would be a complete change of attitude, and it could have this market looking towards the ¥145 level, maybe even as low as the ¥140 level but that would obviously be a major “risk off event” and you would see a lot of selling around the world. I believe at this point in time we are more likely than not to find support, but I do not necessarily know that we find enough to turn everything around. This looks more or less like a market that is trying to figure out its big move, which will almost certainly be coming in the next week or two. Keep in mind that December does tend to be a very thin month, especially as we get closer to New Year’s Day.

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