GBP/JPY Price Forecast – British Pound Pulling Back Against Yen

The British pound has gone back and forth during the course of the trading session on Monday as the markets are simply killing time around the ¥151 level. The market will continue to be very noisy and choppy, but I do think that a pullback is probably the most likely of outcomes. Having said that, if we were to take out the ¥151.50 level, then the ¥152.50 level is your next target. To the downside, I believe that the market could go looking towards the ¥150 level again, as the market seems to be attracted to these big figures.

GBP/JPY Video 31.08.21

We have dipped below there before, so I believe that the ¥150 level represents a 100 point support level, and it is very possible that if we break down below the ¥149 level, the bottom of the market could fall out. At that point, I would become aggressively short of this market, and it would almost certainly coincide with some type of negativity out there anyway. The markets tend to move in a “risk on/risk off” type of attitude, and as a result I think what we are seeing here is a perfect representation of how the market “feels.”

The Japanese yen is considered to be a safety currency, so please keep that in mind as we navigate the markets, but really at this point in time I think we are trying to figure out whether that was a “double bottom”, or if it was just a simple bounce before we see more selling pressure and send this market much lower?

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