GBP/JPY Price Forecast – British Pound Pulls Back After Initial Rally

The British pound continues to be very noisy in general as nobody really knows what is going on around the world. I know a lot of analysts will tell you one thing or another, but the reality is that things have probably never been murkier in the last 15 years that I have been following markets. From a technical analysis standpoint, the ¥152.50 level has been resistance, and of course the Japanese yen is considered to be a safety currency so that is something that should be paid close attention to as well. In general, I think this is a market that will eventually see clarity, but not right now.

GBP/JPY Video 06.09.21

Starting next week, we will start to see more traders coming back into the market, and that could provide a little bit more clarity, as they come back from holiday, but I would not count on it. The question now is whether or not we can make a “higher high”, or are we going to roll over again and go looking towards the double bottom underneath? It is all about risk appetite right now, and therefore you need to look towards other markets to get a bit of a “heads up” going forward. In general, this is a market that I think will continue to be very choppy, so you need to be cautious with your position size, at least as things stand right now. Eventually, we may get a bit of clarity, but we are not there yet and therefore caution is prescribed.

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