GBP/JPY Weekly Price Forecast -British Pound Gives Up Gains

The British pound continues to look very soft, as we initially tried to rally for the week, only to turn around and give up all of the gains against the yen. Because of this, it looks like we are threatening the ¥152.50 region, which is a major support level. Breaking down below the bottom of the candlestick, it is likely that we go much lower. At this point in time, the market then has to go looking towards the ¥150 level, which is a large, round, psychologically significant figure, and an area where we have seen a lot of structural importance in the past.

GBP/JPY Video 15.11.21

The market breaking above the top of the candlestick could send this pair looking towards the ¥155 level, as it would be a massive break of resistance. The ¥155 level is a major resistance barrier, but at this point in time I do not see this market getting there. Quite frankly, the British pound continues to see a lot of weakness, mainly due to the fact that the Bank of England has balked at the idea of tapering, so that continues to weigh upon the pound in general.

All things been equal, I think this pair also goes back to its normal, meaning that it will be highly sensitive to risk appetite, so if we start to see a major sell off and risk assets, this is another pair that could be a big move, perhaps dropping significantly. In general, I think we continue to see a lot of back and forth, but it certainly looks as if the negative pressure is starting to take over.

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