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

The British pound has been hit rather hard against the Japanese yen during the trading session on Friday, as we have seen more of a “risk off” profile around the world. At this point, I would anticipate that the ¥150 level will probably offer support, and quite frankly this pullback is probably a good thing or even those of you out there who are very bullish. Furthermore, I think we could even drop down to the 1.4750 level before we would have to be overly concerned, as this is a market that is obviously very extended at this point.

GBP/JPY Video 22.03.21

We will have to see whether or not the ¥150 level holds, but if it does not then I suspect that the drop to the ¥147.50 level will be somewhat quick. With that in mind, I still would not be a seller because the British pound has been so strong. However, we are starting to see a lot of fear out there as of late and that will continue to be a major issue for this pair. Given enough time, I do think that the buyers return but at the very least you have to think that we had gotten far ahead of ourselves and perhaps this type of pullback was necessary.

Over the longer term, it still looks like a market that wants to go looking towards the ¥155 level, but that does not necessarily mean that we need to get there in the next 20 minutes. Look for dips as potential value, take your time and trying to find a daily supportive candlestick that you can get involved with as this pair does tend to be very volatile and can be dangerous at times.

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