GBP/JPY Price Forecast – British Pound Has Rough Day

The British pound shot higher in the early hours of the trading session on Friday, but then we pulled back from the ¥152.50 level. At this point in time, the market is likely to continue to see a lot of noise just above, and it is very likely that we continue to see a lot of choppy behavior. Quite frankly, this is a pair that is very highly levered to the risk appetite of traders around the world, which of course has been thrown into a bit of a tizzy as the jobs number in the United States was such a disaster.

GBP/JPY Video 10.05.21

Underneath, we have the ¥150 level as support, especially now that the 50 day EMA is sitting there as well. To the upside, if we can break above that ¥152.50 level then I think we could go looking towards the ¥153.50 level. I do believe that this is a market that continues to see a lot of choppiness but given enough time I do think that we need to make a bigger decision. Ultimately, this is a market that I do believe will eventually get moving but it appears that we have been working off quite a bit of froth from the initial shot higher.

If we were to break down below the 50 day EMA, then it is likely that we could go looking towards the ¥145 level. That is where the 200 day EMA comes into play, and of course defines the overall trend. With this being the case, I think it is only a matter of time before the buyers come back but currently, I think we are probably going to see a lot of choppy behavior.

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