GBP/JPY Weekly Price Forecast – British Pound Continues to Search for Support

The British pound has fallen a bit against the Japanese yen during the course of the week to reach down towards the ¥153 level, before popping a little bit higher. That being said, the market is likely to continue to see a lot of noise in this general vicinity, but the question now is whether or not we have enough strength to see whether we can break out to the upside? At this point, I would anticipate more sideways action than anything else over the next couple of months, as we are getting a bit overextended.

GBP/JPY Video 05.07.21

Looking at the chart, the ¥150 level underneath would be a major support level that people would be paying close attention to, as it extends down to the ¥149 level as well. All things been equal, I do not necessarily want to short this pair, but I do recognize that the markets could be on shaky footing, at least in the short term. I believe that the next couple of months will feature this market trying to figure out whether it wants to break above ¥155 or break down below the ¥150 level.

Regardless, keep in mind that the overall attitude of the markets will have a lot to do with where we go next as this market is highly sensitive to risk appetite in general. It rises with more of a “risk on” attitude and of course falls with more of a “risk off” attitude. Looking at this chart, I think the sloppiness will continue going forward and therefore this is a market that is probably going to be traded off of daily charts or below.

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