GBP/JPY Price Forecast – British Pound Trying to Recover

The British pound rallied a bit during the course of the trading session on Friday to wipe out some of the losses from Thursday, and it looks as if we are trying to go looking towards the ¥152.50 level, an area that of course will attract a certain amount of attention based upon the previous price action. If we can take that out, then it is possible that we could continue to go higher, but at this point in time I do not think it will be that easy to accomplish. Quite frankly, risk appetite is all over the place and therefore it makes a lot of these types of payers very unstable.

GBP/JPY Video 12.07.21

To the downside, the ¥150 level should be supportive, as it is a large, round, psychologically significant figure and an area where we have seen a lot of support at previously. If we were to break down below the ¥149 level, then the market is likely to go much lower. At that point, the market could open up a bit of a trapdoor to send the market much lower.

At that point, it would probably be a complete change of the overall trend, and things could get rather ugly. To the upside, if we can take out the ¥156 level, then the market has the ability to go much higher and continue the overall uptrend that we had been in previously. That being said though, the most recent bounce could not make a “higher high”, so therefore I think this is an ominous sign, so at this point in time it is likely that signs of exhaustion will be sold into.

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