GBP/JPY Price Forecast – British Pound Falls After BOE Meeting

The British pound has fallen a bit during the course of the trading session on Thursday as the Bank of England has decided against raising interest rates. There was a little bit of disappointment, and therefore the British pound fell a bit. That being said, it is worth noting that the market is already trying to turn around from the original sell off, suggesting that perhaps the pullback is going to be temporary in nature, as the longer-term trend against the Japanese yen is very strong. Whether or not the British pound lags or keeps up with the rest of the yen related pairs is an entirely different question altogether, but despite the fact that we did have a significant selloff in a very short amount of time, it has not changed the overall trajectory of this market.

GBP/JPY Video 05.11.21

The 50 day EMA sits just below, and that of course could have a bit of an influence as far as support is concerned. Beyond that, you can make an argument that the ¥152.50 level should offer support. At this point, the market does look a little bit like a bullish flag, so I think it is only a matter of time before the buyers come back in. With this being the case, I think that waiting for stabilization and then going long makes the most amount of sense. As we head towards the Friday session, we will also have to deal with the jobs number coming out of the United States, which does cause a little bit of noise overall. With that being the case, be cautious with your position size.

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