GBP/JPY Price Forecast – British Pound Bounces From Crucial ¥150 Level
The British pound has bounced a bit against the Japanese yen as the ¥150 level continues to be crucial support. The ¥150 level is a major level going back several months, so it does make a certain amount of sense that the level has held yet again. All things been equal, you have to pay close attention to the 200 day EMA just above, which is a massive technical indicator that a lot of traders will pay attention to. That being said, if we can break above there, then the market could go looking towards the ¥152.50 level. Breaking that could lead to a huge rally.
GBP/JPY Video 06.12.21
On the other hand, if we turn around a break down below the ¥149 level, then the market could fall apart. All things being equal, the market is likely to see a lot of noisy behavior, but that is mainly due to the fact that we have such importance in this general vicinity. At this point in time, I think that it is likely to continue to be the case, but if we break down below the ¥149 level, it would be a sign that the overall risk appetite of the markets in general have fallen apart.
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In general, this is a market that is a great barometer for everything that is going on around the world, as the Japanese yen is considered to be the “ultimate safety currency.” With that being said, the market is likely to see a huge move sooner or later, but right now it looks like we are trying to figure out which direction we break.
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