GBP/JPY Price Forecast – British Pound Sitting at Fair Value Against Yen

The British pound has fallen slightly during the trading session on Monday, as we continue to dance around the ¥152.50 level, which is roughly halfway between the support level at ¥150 and the massive resistance barrier at the ¥155 level. Ultimately, this is a market that will continue to see a lot of back and forth mainly due to the fact that the “risk on/risk off” attitude of the markets and general. After all, the Japanese yen is considered to be a major safety currency, while the British pound represents the idea of economic expansion.

GBP/JPY Video 10.08.21

Looking at this chart, I do not see it being able to break out of this 500 point range anytime soon, but it is worth noting that we are at least trying to turn things around by forming a “higher low” recently, and if we can break above the shooting star from the previous week, we could have the possibility of a move back towards the ¥155 level. The ¥155 level has been massive resistance multiple times in the past and it certainly will be difficult to break out of.

If we were to break above the ¥155 level, then I would more likely than not look at this as a “buy-and-hold” type of situation. On the other hand, if we were to somehow break down below the ¥155 level, it could really send this market much lower. In the meantime, I think we just simply going to bounce around in this general vicinity.

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