GBP/JPY Price Forecast – British Pound Pulls Back to Kickoff Week

The British pound initially tried to rally during the course of the trading session on Monday but then gave back early gains to reach down towards the ¥152.50 level rather quickly. If we do break down below this level, it is very likely that we could drop another 100 pips. Underneath, we would see massive support not only at that level, but also at the ¥150 level.

GBP/JPY Video 13.07.21

If we were to break down below the ¥150 level, that would be very negative for this market, but you should also keep in mind that the support probably runs down to the ¥149 level in that general vicinity, which is common for these huge round figures and of course potential trend changing situations. With that being said, the market is likely to be very noisy, but will also be influenced by risk appetite in general, so that is something worth paying attention to.

To the upside, the ¥155 level is massive resistance, and if we can break above the ¥156 level, then the market is likely to continue going much higher, as it would continue the overall uptrend, perhaps sending this pair towards the ¥160 level. That being said, it would represent a strong “risk on move” overall, as the Japanese yen is considered to be a safety currency. All of that being said, this is a market that is trying to figure out what to do with itself longer term, so that is something that must be paid close attention to over the next couple of weeks. With this, the most important thing you can do is pay close attention to position sizing.

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