GBP/JPY Price Forecast – Pound Reaches Towards Big Figure Again

The British pound has rallied a bit during the trading session on Thursday to reach towards the ¥150 level. That is an area that of course is a large, round, psychologically significant figure that a lot of people will be paying attention to. That being said, we have pulled back ever so slightly from that level during the course of the session. If we can break above the ¥150 level, then it is likely that we would see another attempt to get to the highs, but quite frankly there are a lot of concerns out there that people are starting to look at, and that has a certain amount of influence on this pair as it is so risk sensitive.

GBP/JPY Video 26.03.21

To the downside, if we were to break down a bit, I think that the next major support level is somewhere near the ¥147.50 level, which is sitting right where we had a major hammer form, and then of course have the 50 day EMA reaching towards that area. All things being equal, this is a market that I think continues to see a lot of choppy behavior, but we had been stretched quite a bit beforehand, so I think a pullback is actually a good thing of this pair. I do not have any interest in shorting this market, I do believe that the Japanese yen is under serious pressure against multiple currencies, so I would rather be a buyer on dips than anything else at this point in time. Currently, I am simply sitting and observing and waiting for a nice opportunity.

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