GBP/JPY Price Forecast – The British Pound Recovers Slightly Against Yen

The British pound has rallied just a bit during the course of the trading session on Wednesday, using the 153 level as a bit of support. With that being the case, the market looks as if it is trying to reenter the previous consolidation area, but it is worth noting that the most recent high was lower than the one before it. Because of this, we need to start to question whether or not the trend is starting to come to an end? This obviously would have a lot to do with risk appetite, so keep in mind that the overall market attitude should be paid close attention to.

GBP/JPY Video 01.07.21

To the downside, if we break down below the low of the trading session on Tuesday, then it opens up a move down towards the ¥152 level, an area we had bounced from previously. Breaking down below that opens up the possibility of a move down to the ¥150 level which of course would be a large, round, psychologically significant figure that could capture quite a few headlines. All of that being said, if we were to turn around a break to the upside, we would have to deal with the area between ¥155 and ¥156. If we break through there, then the market is ready to go much higher, reaching towards the ¥160 level, and perhaps even much higher than that. That would obviously be in a major “risk on” type of move in general, but right now it looks like we have a lot of concerns and questions so choppy behavior is what would be expected.

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