GBP/JPY Price Forecast – British Pound Cracks Below ¥150

The British pound has broken down during the trading session on Tuesday as there was more of a “risk off” type of attitude out there. That being said, the ¥150 level should attract a certain amount of attention, followed closely by the ¥147.50 level. That is an area where we had seen a major hammer form, so that of course suggests that there should be plenty of buyers. If we do break down below there, then it is likely that the market goes looking towards the ¥145 level. Quite frankly, this is going to be all about whether or not we are “risk on” or perhaps even “risk off.”

GBP/JPY Video 24.03.21

The 50 day EMA is starting to reach towards the ¥147.50 level at this point in time, and therefore I think there will be plenty of buyers in that general vicinity. With that being the case, I like the idea of looking for some type of value that we can take advantage of, and now the question is whether or not we have just seen it. I still would like to see more of a pullback in order to get involved, because this has been so parabolic as of late. The Japanese yen is far oversold against most currencies, so we could see a huge move in one direction for several days in a row, only offering another buying opportunity before it is all said and done. With that being said, I will be on the sidelines simply watching this for the next couple of days to see how this all plays out.

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