GBP/JPY Weekly Price Forecast – British Pound Continues Choppy Behavior Against Yen

The British pound has rallied significantly during the course of the week to go looking towards the ¥155 level, which is an area that has been important more than once. That being said, the candlestick does not look overly bullish, but there is so much support underneath that I would not bet too much on the idea of breaking down significantly. Even if we do break down below the crucial ¥152.50 level, it is very likely that the ¥150 level underneath will also offer massive support.

GBP/JPY Video 22.11.21

If we were to break above the top of the candlestick and break above the ¥155 level, then it would be a very bullish sign, sending this market much higher. When you look at this chart, you should also keep an eye on the USD/JPY pair, due to the fact that the ¥115 level has been such a massive barrier going back several years. If that pair can break above there and sustained move, the Japanese yen is going to be sold off relentlessly against almost everything.

On the other hand, if we do break down below the ¥150 level, then it is likely that we could see this market looking towards the ¥145 level. The 200 week EMA is sitting just above there, so that probably offers a little bit of support as well. Keep in mind that a move like that would be very “risk off”, so we would need to see some type of truly ugly behavior out there to make that happen. If that does, you would probably see it across multiple assets.

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