GBP/JPY Price Forecast – British Pound Bounces From 200 Day EMA
The British pound has shown itself to be resilient, as the market has gapped higher to kick off the week. The 200 day EMA of course is an indicator that a lot of people pay close attention to, so showing signs of a bounce here would make a certain amount of sense. Furthermore, it was not a “real market.” That being said, I do think that we probably bounce a bit in order to test the ¥152.50 level, and what we do there will be crucial. Keep in mind this pair is highly sensitive to risk appetite, so while there might be a bit of a “flush lower”, do not be surprised to see this market try to recover.
GBP/JPY Video 30.11.21
Underneath, I believe that the ¥150 level is an area that could offer a bit of a “floor the market”, as it is psychologically and structurally important. Furthermore, believe that the market will continue to favor more of a “risk on flavor”, especially as Friday was so out of sorts with low liquidity. That being said, if we cannot break above the ¥152.50 level, then I think we may have a problem. Until then, I am not overly concerned about this market, but I certainly would not jump in with both feet.
It is worth noting that you have to pay attention to the USD/JPY pair, because it gives you the idea of the relative strength for the Japanese currency itself. If the USD/JPY pair continues to drive towards the ¥115 level, then it will probably help this market as well. That being said, I would anticipate quite a bit of volatility.
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This article was originally posted on FX Empire