GBP/JPY Weekly Price Forecast – British Pound Continues to Show Signs of Confusion

The British pound has been all over the place against the Japanese yen as of late, as we continue to see a lot of noisy trading. The British pound against the Japanese yen is a very sensitive to risk appetite, so that something that you need to pay close attention to. What we do have here is a very clear support level near the ¥149 level, so if we breakdown through there, then it is likely that we fall apart and go much lower, perhaps reaching down to the ¥145 level, possibly even the ¥140 level. As things stand right now, I think that is very possible.

GBP/JPY Video 04.10.21

However, that has not kicked off yet, so quite frankly you are wasting your time trying to jump in the market right now. On the other hand, if we were to turn around a break above the ¥153 level, then we have a real shot at trying to take out the ¥155 level. What you do not see on the weekly chart as clearly as you do on the daily chart is the fact that we have formed a complex head and shoulders pattern, which can lead to lower pricing.

The shape of the candle of course is less than enthusiastic and is relatively neutral with just a slightly negative bias. That is a good representation of what is going on under the hood of the market, so keep in mind that it is very worthy of paying close attention to, but I would be cautious about going “all in” until we get clarity.

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