GBP/JPY Price Forecast – British Pound Reaching Towards 50 Day EMA

The British pound has rallied significantly during the trading session on Wednesday to reach towards the 50 day EMA. By doing so, we have recaptured the upward momentum that had been so important for this market, and we are now sitting just below the ¥152.50 level. Ultimately, this is a market that probably is going to run into some type of selling pressure, so I am looking for signs of exhaustion in order to start selling again. To the downside, the ¥150 level underneath is going to be supportive and at this point in time is going to be a target.

GBP/JPY Video 23.12.21

Ultimately, this is a very impressive candlestick, so I would not just jump into it and start shorting, I do need to see some type of exhaustion. With this being the case, I believe it is only a matter of time before the market has to give up some of the momentum, and at this point in time I think we are simply bouncing around in this 250 PIP range and will probably stay in the going forward. However, if we did break above the ¥152.50 level to go looking towards the ¥153.75 level. I do not necessarily think that happens, but it is possible.

You should keep in mind that this pair is highly sensitive to risk appetite, so at this point in time you should be keeping an eye on the stock markets and the like to see how things are going. If they are rising, typically that sends this market higher, and of course vice versa. Ultimately, this is a market that I think is more likely than not going to be exhausted.

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