GBP/JPY Price Forecast – British Pound Continues to Hover Around ¥150

·2 min read

The British pound has rallied a bit during the course of the trading session on Monday to reach above the ¥150 level. That being said, the market is also given back a bit of the gains, so it looks to me like we are probably going to be consolidating more than anything else at the moment. With that being the case, it is very likely that we continue to see a lot of consolidation in order to try to build up a bit of a base that we can bounce from.

If we can take out the 200 day EMA to the upside, then it is very likely that we go much higher, perhaps trying to recover all the way to the ¥152.50 level. That is an area that has been important more than once, so do pay attention to it. I do believe that any break of that will attract a certain amount of attention that could bring in fresh buyers.

GBP/JPY Video 07.12.21

The noisy behavior that we have seen in this area probably should not be a huge surprise for most of you, because quite frankly this is an area that has been noisy in the past. Because of this, it is more likely than not that we try to make a stand here and recover. However, if we were to break down below the ¥149 level, it is very likely that this market will then fall apart, perhaps collapsing all the way down to ¥145 rather quickly. I do not necessarily think that is going to happen right away, but it certainly looks as if we are trying to threaten that move.

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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