GBP/JPY Price Forecast – British Pound Tread Water Into the Weekend

The British pound has gone back and forth during the course of the trading session on Friday against the Japanese yen as we are hanging around just below the ¥152.50 level, an area that has been a little bit of a magnet for price. Quite frankly, keep in mind that this market is highly sensitive to risk appetite and therefore you need to pay attention to what is going on with stock markets and the like. After all, the Japanese yen is considered to be the ultimate safety currency, and therefore it gives you a look at how traders around the world view economic risks.

GBP/JPY Video 16.08.21

To the upside, if we could break above the ¥153.50 level, then it is possible that we could go looking towards the ¥155 level after that. If we break down below the lows of the candlestick for Friday, then it is likely we go looking towards the ¥151.50 level, and then ultimately the ¥150 level, an area that I think would attract a lot of attention. With that being the case, we see a lot of resistance in that area but breaking below that hammer that sits just below the big figure would open up massive selling.

We have recently made a little bit of a “higher low”, but we have not made a “higher high”, not necessarily able to reaffirm an uptrend. If that were to happen, then I believe that the ¥155 level will be offer a bit of a “ceiling in the market”. While I do not expect to see that happen easily, it is something that you would have to stand up and take notice of.

For a look at all of today’s economic events, check out our economic calendar.