GBP/JPY Price Forecast – The Dragon runs into resistance

The British pound has fallen a bit during trading on Friday against the Japanese yen but it looks as if the buyers are coming back to defend the ¥148 level. The ¥150 level above should be massive resistance, and I think that at this point we will have a lot of pushing and pulling in this pair. It’s likely that the volatility will continue to be an issue, and I think at this point we may be a bit overbought. With that in mind, I anticipate that the market will probably try to go lower, but obviously a break above the ¥150 level would be a major victory for the bullish traders out there. Overall though, as we go into the weekend it makes sense that a lot of people won’t want to put a major amount of money into a market that is sensitive to risk appetite.

GBP/JPY  Video 12.11.18

The ¥145 level underneath is massive support, and I don’t think that we break down below there. If we break above the ¥150 level, then I think the GBP/JPY pair will probably test the ¥152.50 level next. At this point, it’s likely that we will continue to see a lot of volatility going forward and given enough time it’s more than likely going to be a market that gives both buyers and sellers a little bit of what they want. Longer-term, I think we are desperately needing a pullback to get things going.