GBP/JPY Price Forecast – British Pound Gives Up Early Gains
The British pound has initially tried to rally during the trading session on Friday but gave back early gains as it looks like the impulsive candlestick from the previous session is being fought against. Whether or not we can continue to pullback will probably be greatly influenced by the USD/JPY pair, as the strength or weakness of the Japanese yen can show up in that market. That being said, the British pound itself is relatively strong, and therefore it is very possible that although we pull back, and drop from here, the possibility is that it is choppy on the way down.
GBP/JPY Video 27.09.21
On the other hand, if we were to turn around a break above the top of the candlestick for the Friday session, it is likely that we could go looking towards the 152 ¥0.50 level, which is where we had seen a lot of resistance previously. As things are turning around at the moment, and very much looks like we are going to go looking towards the ¥149 level underneath. Breaking down below that level will open up quite a bit of selling pressure at that point, because quite frankly the market is looking very likely to be forming a larger topping pattern.
Looking at this chart, we have made a longer series of lower highs, but we obviously have a significant support barrier underneath. That being said, if we do break down through that barrier, this is a market that will be very negative to say the least, but at this point in time we look as if we are ready to continue chopping around in this area.
For a look at all of today’s economic events, check out our economic calendar.