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GBP/JPY Price Forecast – British Pound Bounces From 200 Day EMA

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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.

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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