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

The British pound fell hard during the course of the trading session on Thursday as we continue to see a lot of “risk off” attitude out there after the show the first signs of potentially tightening. That being said, it has multiple months if not years down the road, so I do think that this is a little overdone. Regardless, it is worth noting that the ¥153.50 level is an area that I had called to be support previously, so it will most certainly be paying close attention to it. If we break down below there, then I think we have about another 100 pips ago, but as I record this it looks like we are certainly trying to find a little bit of stability. I anticipate that New York will probably make all of the decisions as Europe has certainly voted “fear.”

GBP/JPY Video 18.06.21

To the upside, the ¥155 level is obviously a massive resistance barrier that is going to be difficult to get above, but if we do finally, then we could go looking towards ¥157.50. Nonetheless, I think the most likely of outcomes is going to be a lot of noisy behavior, and quite frankly headaches if you are over levered. Because of this, I am only taking on small positions, and quite frankly may not take one until Friday as Thursday looks like it is going to be a bit of a shakeout. The question is whether or not it is going to be a day that we find buyers, or does the panic continue? I think it is a little overdone, but we need to let the market tell us what it is going to do.

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