GBP/JPY Price Forecast – British Pound Continues to Reach Towards ¥155

The British pound has gapped slightly higher against the Japanese yen during the trading session on Monday, breaking above the ¥154 level. At this point time, the market is likely to continue to see the ¥155 level as a major barrier, which has been proven multiple times. Ultimately, there should be a significant amount of resistance between ¥155 and ¥156 and breaking above that opens up the market for a much bigger move. At that point, I would anticipate that we would initially go looking towards the ¥157.50 level, and then eventually the ¥160 level.

GBP/JPY Video 29.06.21

To the downside, if we break down a bit, we could go looking towards the ¥152.50 level to retest the support from the most recent bounce. Breaking through that opens up the possibility of a move towards the ¥150 level. That of course is a large, round, psychologically significant figure which of course will come into play, and therefore it will be interesting to see whether or not we can break down through there.

If we do, then it would be like the trapdoor falling out and open, allowing the market to plunge quite quickly from there. Underneath that support area, I anticipate that the market would probably drop another 500 pips. Having said that, the market is very sensitive to risk appetite, so if we do see that move it is probably going to be a scenario where there is a complete “risk off” attitude around the world, and not just necessarily and the British pound. One thing I think you can count on is a lot of volatility in choppiness in this general vicinity, and therefore you will have to size your position accordingly.

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