GBP/JPY Price Forecast – British Pound Falls Into Support

The British pound has fallen a bit during the trading session again on Wednesday as we go careening into the ¥150 level. This is an area that begins significant support extending down to the ¥149 level. As long as we can stay above ¥149, there still some hope for this pair but if we break down below that level it is very likely that we unwind for much deeper of a correction. At that point, I would anticipate that the market could go looking towards the ¥145 level, possibly even the ¥140 level over the longer term.

GBP/JPY Video 30.09.21

To the upside, if we can clear the ¥153 level then it is likely that we will continue to go to the ¥155 level, although I do not find that it is likely at this point in time. There is a lot of “risk off” type of trading out there right now, which certainly works against the value of this pair. The Japanese yen is considered to be a safety currency, so a lot of people will be paying close attention to it and whether or not fear starts to creep back into the market.

At this point, it looks like we are trying to hold the line as far as support is concerned, but one would have to think that in the present scenario that we find ourselves in that it is probably only a matter of time before something happens. Because of this, I will be very cautious about my position size, but I also recognize that the market breaking below the ¥149 level would be a time to get very aggressive.

For a look at all of today’s economic events, check out our economic calendar.