GBP/JPY Price Forecast – British Pound Pulling Back Against Yen
The British pound has initially tried to rally during the course of the trading session on Friday but gave back gains to drift below the ¥157 level. This of course is a sign of weakness, but at this point in time the market clearly has been overbought and therefore a pullback needs to happen in order to build up a little bit of value. Quite frankly, the market got so far over stretched at that I am looking for a return to the ¥155 level at the least. Any sign of support or of bounce in that general vicinity is reason for me to get long. Even if we breakdown through there, I believe that the ¥152.50 level then offers support.
GBP/JPY Video 25.10.21
Keep in mind that this pair is highly sensitive to risk appetite, so you need to watch what is going on around the world, as it could give us a little bit of a “heads up” as to where this pair could go. That being said, the Japanese yen is far too oversold to get aggressive with that this point, so I think what we are looking at currently is a market that you need to wait for opportunity.
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If we were to turn around and break above the highs, I would not like that at all, because it would lead this market into something akin to cryptocurrency type trading, which is reckless to say the least. The noisy behavior in this market should continue to be a deterrent, but eventually we will get the stability that we need. In general, I do not like chasing trades, and sometimes the hardest part of being a profitable trader is simply waiting for your opportunity.
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