GBP/JPY Price Forecast – British Pound Gives Up Early Gains
The British pound initially tried to rally during the course of the trading session on Wednesday, but gave back the gains rather quickly, as we are essentially just hanging about in the same general area, we have been in over the last couple of days. Ultimately, this is a market that I think continues to see a lot of noisy behavior, because quite frankly it is highly correlated to risk appetite. As people go looking for safety, they will be buying Japanese yen.
GBP/JPY Video 15.07.21
To the upside, if we could clear the ¥154 level, then the market will probably go challenge the highs that we made several weeks ago. Ultimately, this is a market that I think continues to see a lot of volatility more than anything else, and at this point in time there are a lot of concerns out there when it comes to whether or not we are going to continue to see growth. The range has been relatively tight, so that of course shows that we are perhaps building up inertia to make a much bigger move.
Until then, I still believe that rallies will probably be sold into, but I am not looking for a big move until we break down below the ¥152.50 level. If we do, then it is very likely that we will go looking towards the ¥150 level underneath, which of course is a large, round, psychologically significant figure. With that being the case, I think there would be a lot of noise there but breaking down below that could change the entire trend.
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