GBP/JPY Price Forecast – British Pound Trying to Find Footing Again

The British pound has fallen a bit during the trading session on Wednesday to reach down below the ¥149 level. However, we have not seen enough follow-through to make the move convincing quite yet. I think there is much more in the way of support closer to the ¥147.50 level, so I would be very interested to see how that area would react to falling prices. In that general vicinity, we have seen a hammer form, as well as another surge higher. Furthermore, we are starting to see the 50 day EMA come into the picture, so that of course is something worth paying attention to. The 50 day EMA is widely followed by technical analysis traders around the world, so one would expect some type of reaction.

GBP/JPY Video 25.03.21

To the upside I believe that the ¥150 level is the next area to pay close attention to, as it is a large, round, psychologically significant figure in of course will cause a few headlines. We have been in a significant uptrend for some time so one has to assume at the very least there should be an attempt to follow-through. It is worth noting that the biggest candlesticks that we have formed over the last couple of weeks have all been negative, so that does suggest that we are starting to struggle a bit at these lofty levels. Keep in mind that this pair is highly risk sensitive, so keep an eye on other markets to let you know whether or not traders are feeling optimistic or not, and trade accordingly.

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