GBP/JPY Price Forecast – British Pound Continues to Recover Against Yen

The British pound initially fell during the trading session on Monday but has seen buyers come back into the market to push things back up. This is a sign of “risk on behavior”, and it looks as if the market is going to go towards the ¥152.50 level, an area that has been important more than once. That being said, we have recently seen a massive amount of selling pressure, so I think that it is going to be difficult to continue going higher. Rick above the ¥152.50 level, then it is possible that we could break out towards the ¥153 level.

GBP/JPY Video 27.07.21

Keep in mind that this pair is highly sensitive to the risk appetite of traders around the world, so we most certainly need to pay close attention to what is going on in other market such as the stock market, futures markets, and the like. All things being equal, this is a market that I think will continue to be very noisy and therefore potentially difficult, but it eventually returns to its old correlations of risk appetite fueled moves. Furthermore, we also have to pay close attention with all note the British pound overall, because it will obviously have a major influence on what happens next. I think there are a lot of concerns out there, so I expect to see a short-term rally, followed by some type of exhaustion above. If we have that happen, then we could get a nice longer-term move eventually, but I also recognize that the ¥150 level underneath will be significant in its importance.

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