GBP/JPY Price Forecast – British Pound Slows Down Against Yen

The British pound has went back and forth during most of the trading session on Wednesday as we continue to see a lot of noisy behavior right around the ¥157.50 level. This is an area that I think could run into a bit of trouble for the buyers in the short term, but quite frankly it is only a matter of trying to build up the necessary momentum to go higher. With this, I think that pullbacks will be bought into, especially near the ¥155 level. That is an area that I think will continue to be of consequence, and therefore I would anticipate a certain amount of buying pressure in that general region.

GBP/JPY Video 21.10.21

If we do break down below the ¥155 level, is very likely that this market will then find one reason or another to bounce from there, as I think a lot of “market memory” could come into play at that point. That being said, this is a market that I think ultimately goes looking towards the ¥160 level over the longer term, but we just have gotten to this level a bit too quickly to make it sustainable. With that being the case, I think it is only a matter of time before buyers come in on dips in order to pick up bits and pieces of value along the way. If they do, then I will be willing to pick up that bounce. I believe that the absolute “floor the market” is near the ¥152.50 level. I have no interest whatsoever in trying to short a market that has behaved like this.

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