GBP/JPY Price Forecast – British Pound Pulls Back From Familiar Resistance
The British pound initially tried to rally during the trading session on Tuesday but gave back the gains as we got close to the ¥152.50 level. This is an area that has been important and difficult for quite some time. At this point, the market looks as if it is trying to build up momentum to the downside, possibly kicking off a major low. If you see this market break down below the ¥149 level, then it is likely that we will fall quite drastically. At this point, the market then probably drops down to the ¥145 level, maybe ¥140.
GBP/JPY Video 29.09.21
Rallies at this point in time still continue to see sellers above, and the fact that the level has been tested multiple times and failed, that suggests that we are going to continue to see a lot of selling pressure every time we rally. All things been equal, this is a market that is going to move right along with risk appetite, so keep that in mind as well. Because of this, expect a lot of noisy behavior but clearly you should be looking for opportunities to short this market every time it shows signs of weakness.
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On the other hand, if we were to break above the ¥153 level, then it is likely that we could go looking towards the ¥155 level above. The ¥155 level has been like a brick wall, so if we do take off above there it would kick off a major “buy-and-hold” type of situation. The market is of course highly sensitive to risk appetite, so keep that in mind as well.
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