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GBP/JPY Price Forecast – British Pound Continues to Threaten ¥155 Level

By:
Christopher Lewis
Published: Nov 17, 2021, 14:57 UTC

The British pound has rallied a bit during the trading session again on Wednesday as the massive candlestick on Tuesday seems to be somewhat confirmed. At this point though, we still have to pay close attention to the ¥155 level.

GBP/JPY Price Forecast – British Pound Continues to Threaten ¥155 Level

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The British pound has rallied a bit during the course of the trading session on Wednesday as we continue to see the Japanese yen get hammered. That being said, it is worth noting that the USD/JPY pair is struggling with the ¥115 level, and while at first glance it may not seem to matter, the reality is that it tells you the Japanese yen may fight back. Keep in mind that you are triangulating between the GBP/USD pair, the USD/JPY pair, to get the rate of exchange here.

GBP/JPY Video 18.11.21

At this point, the ¥155 level course is very important, but you would need to see the British pound be able to break out against the US dollar, while the US dollar breaks out against the Japanese yen. This is all perfectly possible, but you should keep in the back of your head that there is going to be a little bit of noise in this general vicinity. With that being the case, I think that need to be cautious about jumping “all in” at this level. However, if we can break above the ¥156 level, then this market could really take off to the upside.

To the downside, if we can break down below the ¥152 level, then it is likely that we go looking towards the ¥150 level over the longer term, although the 200 day EMA currently sits just above there, so that could also offer a bit of support. Anything below the ¥150 level would signify a new bearish market in this pair.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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