GBP/JPY Price Forecast – British Pound Reaches Towards Resistance Again

The British pound has rallied again during the trading session on Friday to reach towards the ¥152.50 level yet again, an area that has caused some issues. Reaching towards that area makes quite a bit of sense, because we have been consolidating for what seems like ages. In this scenario, I would anticipate that there are sellers just waiting to jump in, perhaps extending all the way to the ¥153 level.

GBP/JPY Video 11.10.21

Markets are bit confused due to the plethora of headlines coming out as far as “risk on/risk off” is concerned. Until we get some type of clarity as to where we are going next when it comes to risk appetite, it is almost impossible to imagine a scenario where you would be comfortable putting a ton of money in this market. That being said, if we were to break above the ¥153 level, then it is likely that the market could go looking towards the ¥155 level. On the other hand, if we turn around and break down below the candlestick from the trading session on Friday, then it is possible that we could go looking towards the ¥150 level yet again.

The ¥150 level is an area that offers significant support that extends down to the ¥149 level. If you break down below that level then it is possible that we could see a much more significant selloff, which would be a massive “risk on situation” around the world as this pair is so highly sensitive to all of that. The market continues to see a lot of volatility, and quite frankly I just do not see that changing anytime soon.

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