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GBP/JPY Price Forecast – British Pound Plunges Towards Major Support Region

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The British pound has tried to rally initially during the trading session on Tuesday but has turned around to fall rather hard. At this point, the market is sitting just above the ¥150 level, which is the beginning of a massive support region that extends down to the ¥149 level. That is an area that I think needs to hold in order for the longer-term uptrend to be viable, and if we were to break below the ¥149 level, then we could see this market fall out of bed completely. A lot of this seems to be based upon the Japanese yen recovering, so it will be interesting to see if this can keep up. I will be looking for some type of reversal signal in this general vicinity but would not hesitate to short this market below ¥149.

GBP/JPY Video 01.12.21

Looking at this chart, if we turn around and take out the top of the candlestick for the session on Tuesday, that would obviously be a very bullish sign, with the ¥152.50 level likely to be the target. Keep in mind that this pair is highly sensitive to risk appetite, so you will have to pay attention to that as well. The markets of course recently have been focusing on the new variation of coronavirus, so this of course could have a significant influence on what happens next as well. In the last couple of days, this is a market that I think was focusing on the potential problems, but I would not be surprised at all to see the narrative turn right back around as it typically does on headline noise.

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

This article was originally posted on FX Empire

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