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

The British pound has initially pulled back a bit during the course of the week but then turned around a break above the ¥153 level. That being the case, it looks as if the market is going to try to continue to grind higher, but keep in mind that this pair is highly sensitive to the risk appetite of markets around the world, so pay close attention to how stock markets behave, as well as other things along the lines of commodities. That being said, the British pound of course is considered to be a currency that people buying good times, while the Japanese yen is considered to be a massive safety currency.

GBP/JPY Video 02.08.21

If we can break above the top of this weekly candlestick, then it is likely we go looking towards the ¥155 level, which was the most recent high. It is also an area where we see a significant amount of resistance at over the months and years pass. On the other hand, if we pull back from here we could go looking towards the ¥150 level, which I think would be massive support and thereby breaking down below the candlestick from the previous week which was the hammer would open up massive selling, perhaps reaching down to the ¥145 level, maybe even as low as the ¥140 level, as I believe that a break down below the hammer from the previous week would of course represent some type of shock to the system and therefore I think the reaction could be rather nasty as it would be a safety trade all across-the-board in my estimation.

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