GBP/JPY Price Forecast – British Pound Continues to Trade and Same Range
The British pound has rallied ever so slightly against the Japanese yen during the trading session on Thursday, as we continue to see the same reaction worldwide to risk appetite, in the form of confusion to say the least. Because of this, it is likely that we will see a continuation of the overall choppy behavior that we have seen for some time. Because of this, I think that you have to continue to look at the ¥153 level as the top of a resistance barrier, and then the ¥150 level is significant support underneath. That support extends down to the ¥149 level, which is a major range of support.
GBP/JPY Video 08.10.21
As we are sitting essentially just in the middle of the overall range, it makes sense that you probably stay away from this trade unless of course you are willing to go back and forth between the two major areas on short-term charts. Range bound traders will probably like this chart, but when I look at the longer-term version of this chart, it suggests that perhaps we are trying to form a bit of a topping pattern.
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When you look at this chart, it is easy to see just how erratic the markets have been as the pair tends to rise in good times but tends to fall when there is more of a “risk off attitude” around the world. That being said, the markets seem to be locked in some type of indecisive behavior, so I think all of this makes quite a bit of sense. If we do break out of the range, then it is simply a matter of following the market either higher or lower.
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