GBP/JPY Price Forecast – British Pound Running Out of SteamThe British pound has tried to rally again during the trading session on Wednesday but seems to be running out of steam against the Japanese yen .
The British pound has rallied a bit against the Japanese yen during the trading session on Wednesday but has given back the gains as we reached above the ¥151 level. While I do not necessarily think that this is a sell signal, it does suggest that perhaps the market needs to spend a little bit of time just below in order to build up enough momentum to continue the longer-term uptrend. Obviously, we have been in a strong uptrend for a while so I do not necessarily think that you can be a seller of this pair. However, pullback does make quite a bit of sense and I do think that the ¥150 level will show a significant amount of interest.
GBP/JPY Video 11.03.21
For what it is worth, the Tuesday candlestick ended up being a shooting star and the Wednesday candlestick certainly looks sluggish, so I think at this point we are simply running out of steam. Again, I do not think that this is a selling opportunity, but I do think that we are going to see a lot of noise in general and perhaps a little bit of “base building” for the next potential move higher. Even if we break down below the ¥150 level, I think that there is plenty of support below at the ¥147.50 level that could come into play as well, and I would not be concerned about the overall uptrend until we break down below the ¥145 level, something that would take quite a bit of selling to accomplish.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For a look at all of today’s economic events, check out our economic calendar.