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GBP/JPY Price Forecast – British Pound Reaches Towards ¥153.50

By:
Christopher Lewis
Published: Dec 23, 2021, 13:50 UTC

British pound has gone straight up in the air again during the trading session on Thursday, as we are now at the ¥153.50 region.

GBP/JPY Price Forecast – British Pound Reaches Towards ¥153.50

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The British pound has gone straight up in the air during the trading session on Thursday to reach towards the ¥153.50 level. This is an area where we had seen significant selling previously, so now we have done a complete “round-trip” on the charts as markets do not really seem to have any clue as to where they want to go longer term. Part of the volatility could have to do with the lack of liquidity this time year, but quite frankly I am seeing this in the British pound across-the-board.

GBP/JPY Video 24.12.21

For what it is worth, I think any return to the ¥152.50 level is probably going to be supported, and therefore probably a buyable event. Nonetheless, I do not like chasing trades, so I would not be a buyer all the way up here. Chasing the trade is a great way to lose money, and something that I avoid at all costs. At this point, you need some type of pullback in order to offer value. Whether or not you get it is completely different question, due to the fact that we are already talking about Christmas Eve, and that of course next week will be thin as well.

This chart is a perfect microcosm on just how erratic and confused the markets are in general, because as you can see we are just going back and forth in violent moves. Unfortunately, I think this is something that probably continues heading into the month of January. Keep your position size relatively small, it is the best thing you can do to protect your account this time of year.

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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