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GBP/JPY Price Forecast – British Pound Hanging Onto Support

By:
Christopher Lewis
Published: Nov 11, 2021, 14:59 UTC

The British pound is sitting just above the ¥152.50 level, an area that previously was very resistive. If this area gives up, it could be very bad.

GBP/JPY Price Forecast – British Pound Hanging Onto Support

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The British pound has pulled back just a bit against the Japanese yen during trading on Wednesday, as we continue to see a lot of noise right around the ¥152.50 level. This is an area that will continue to be important, at least in the near term. The area has seen a certain amount of both resistance and support over the last several months, so I think that if we were to see a move, its going to be now.

GBP/JPY Video 12.11.21

The currency pair tends to be very sensitive to risk appetite, so you need to pay attention to other markets, and whether or not they seem to be willing to take on more risk. If they are, it is very likely that this pair rallies. However, the GDP numbers coming out of Great Britain during the early part of the day was a bit of surprise, as they are lower than they were before the pandemic. Because of this, the British pound may end up being the next place where we see underperformance.

The Japanese yen has been oversold for a while, so it is not a huge surprise to see this market pullback from that standpoint as well, so it is a bit of a one-two punch currently. Given enough time, we will have to see whether or not we break down towards the 200 day EMA and by extension the ¥150 level. That is an area where I would expect the “floor in the market” to reside. If we were to break that, then this market probably unwinds quite drastically. It is worth noting that short-term rallies continue to be sold into.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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