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

The British pound got slammed against the Japanese yen on Friday as new coronavirus variance are popping up in a couple of different places. This of course was a major “risk off move”, as the Japanese yen strengthened against almost every currency. Ultimately, I think this is a market that given enough time will eventually go looking towards the ¥155 level, but if we break down below the bottom of this candlestick, we may have to revisit ¥150 first. Keep in mind that this pair is highly sensitive to risk appetite, and of course liquidity may have exacerbated what we had seen on Friday.

GBP/JPY Video 29.11.21

To the upside, if we can break above that ¥155 level, it is likely that we will see a big move to the upside. Ultimately, we are in an uptrend and the sudden fits and starts are par for the course. I believe it is probably only a matter of time before somebody steps in and tries to pick up a bit of value, but if we were to lose the ¥149 level, then I think this whole thing falls apart. That would obviously be a major shock to the system and would kick off a lot of downward pressure in my estimation.

Keep in mind that December tends to be extraordinarily volatile, so that is not can help the situation either. You are going to have to be very noble at this point, especially if you are trying to find some type of longer-term trade. I do not necessarily think this is going to be your month in either direction, so you may have to stick to short-term charts.

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