GBP/JPY Price Forecast – British Pound Gets Crushed Against Yen

The British pound has broken down significantly during the course of the trading session on Thursday as we see a massive “risk off move” brewing in the markets. That being said, it does look as if the ¥150 level underneath offers a certain amount of support, if for no other reason than the psychology of the big figure like that. Regardless, we have seen the area offer a bit of support in the past as well. With this being the case, I anticipate that the market will probably find a little bit of stability in that general vicinity, because if we break down below the ¥149 level, the absolute “bottom would fall out” of this trend.

GBP/JPY Video 09.07.21

To the upside, the ¥152.50 level should offer resistance, and at this point in time we would need to see some type of return to “risk on” into the overall markets, in order to see the Japanese yen gets sold. At this point, it certainly looks as if the market is trying to form some type of “waterfall pattern”, which means we could go much lower. If we break down below the ¥149 level, I anticipate that this market will probably come undone rather quickly. After all, it is a very volatile pair under the best circumstances, and if we get some type of general panic, it is really going to come undone over here.

If we can take out the top of the candlestick from the Thursday session, then I might be convinced to start buying, but really at this point in time that would take a lot of work and I would be surprised to see that happen between now and the end of the week.

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