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GBP/JPY Price Forecast – British Pound Hanging Onto Support

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The British pound has been somewhat noisy just above the ¥150 level, an area that has been important more than once. Because of this, you need to pay close attention to this area, because I believe it extends down to the ¥149 level in a massive “range of support.” With that being the case, the market is likely to continue seeing trouble, and it is also worth noting that the Japanese yen has found a little bit of strength as of late. Because of this, it is probably worth noting that the market is one that is ready to make a relatively big move, and therefore the next couple of weeks will probably be crucial.

GBP/JPY Video 02.12.21

Looking at the chart, I believe that a move below the ¥149 level opens up a massive selling opportunity, perhaps one that lasts for weeks on end. We either do break down in this general vicinity, or we spend the next several sessions trying to find a bottom. I think it is a bit difficult to trade this market right now, but I do recognize that the next move is probably going to be rather impressive. At this point, short-term back-and-forth traders may be involved, but you are talking about small positions, not something that you would jump in with massive amounts of money. With this in mind, I am paying close attention to the USD/JPY pair as well because it will give you the idea of whether or not the Japanese yen has relative strength or weakness, because it will certainly have a major influence on what happens over here as well. It is worth noting that the 200 day EMA sits just above.

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This article was originally posted on FX Empire

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