GBP/JPY Weekly Price Forecast – British Pound Turned Around to Show Support Again

The British pound has fallen significantly during the course of the trading week to reach down towards the significant support level underneath before bouncing again. Because of this, it looks as if the market is trying to recover for a bigger move, but there are quite a few hurdles above that offer a certain amount of resistance. The ¥152.50 level course is an area where we have seen a lot of resistance previously, so it would obviously be an area of interest for sellers to get involved. That being said, if we break above there the market then goes much higher.

GBP/JPY Video 27.09.21

If we were to turn around a break down below the bottom of the candlestick, it would be a very negative turn of events, perhaps opening up a move down to the ¥145 level, and then followed by the ¥140 level. That being said, it would take quite a bit of effort to make that happen, so I am not necessarily looking for that scenario right away. The market breaking down below the bottom of the candlestick would of course send a flood of new sellers into the market, so I think at that point in time you could get aggressive. Until then, the market is going to be very choppy and listless, as we have seen over the last couple of months. All things been equal, things look as if they are sticking to a range in general, but pay close attention to the bottom of this candlestick as it could kick off a huge move.

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GBP/JPY Price Forecast – British Pound Gives Up Early Gains

The British pound has initially tried to rally during the trading session on Friday but gave back early gains as it looks like the impulsive candlestick from the previous session is being fought against. Whether or not we can continue to pullback will probably be greatly influenced by the USD/JPY pair, as the strength or weakness of the Japanese yen can show up in that market. That being said, the British pound itself is relatively strong, and therefore it is very possible that although we pull back, and drop from here, the possibility is that it is choppy on the way down.

GBP/JPY Video 27.09.21

On the other hand, if we were to turn around a break above the top of the candlestick for the Friday session, it is likely that we could go looking towards the 152 ¥0.50 level, which is where we had seen a lot of resistance previously. As things are turning around at the moment, and very much looks like we are going to go looking towards the ¥149 level underneath. Breaking down below that level will open up quite a bit of selling pressure at that point, because quite frankly the market is looking very likely to be forming a larger topping pattern.

Looking at this chart, we have made a longer series of lower highs, but we obviously have a significant support barrier underneath. That being said, if we do break down through that barrier, this is a market that will be very negative to say the least, but at this point in time we look as if we are ready to continue chopping around in this area.

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GBP/JPY Price Forecast – British Pound Reaches Towards Resistance Area

The British pound has rallied quite significantly during the trading session on Thursday to reach towards the ¥151 level, an area that has had a significant amount of selling pressure. The size of the candlestick is impressive, but at the end of the day it is very likely that we continue to see a lot of noise in this area, and more than likely a lot of selling pressure. That being said though, the ¥149 level has been an area where we had seen support multiple times, as we now have formed a recent “triple bottom” in that general vicinity. That being said, it also sets up for a nice selling opportunity if we get below there.

GBP/JPY Video 24.09.21

Notice how the most recent highs have all been lower as well, so all things being equal this is a descending triangle forming, and that of course is a very negative set up as well. Beyond that, when you look at the longer-term chart, you can see that the market has been forming a bit of a complex head and shoulders, and therefore we could see a lot of negativity coming soon. That being said, the market is likely to see a lot of volatility, as the pair is very sensitive to the risk appetite around the world, which of course is all over the place. All things been equal, I am still negative until we get above the ¥153 level, on a daily close. If that happens, then I think the market turns around and goes much higher. That being said though, it still looks very negative.

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GBP/JPY Price Forecast – British Pound Gives Up Early Gains

The British pound has initially rallied against the Japanese yen to kick off the trading session on Wednesday, but then turned around to show signs of weakness yet again. That being said, the ¥150 level of course has offered quite a bit of resistance, and therefore it is not surprising at all to see that we have formed another inverted hammer. At this point, it is probably only a matter of time before we break down below the support level, which is roughly ¥149.

GBP/JPY Video 23.09.21

If we turn around a break above the ¥150 level, then it is likely that we will try to take out the top of the candlestick from the Monday session, which is where a massive amount of selling began. If we were to break above there, then I think there are lot of noisy behavior between there and the ¥152.50 level. Furthermore, when you look at the longer-term chart, it certainly suggests that we are forming a large complex head and shoulders, which of course is a very negative sign. If we break down below underneath, it is very likely that the market goes much lower.

On the breakdown, the market is likely to go looking towards the ¥145 level, possibly even down to the ¥140 level. Either way, as far as buying is concerned, it will be very difficult to do unless of course we suddenly get a major “risk on attitude” around the world. All things being equal, this is a market that is as if it is going to go lower given enough time.

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GBP/JPY Price Forecast – British Pound Gives Up Initial Rally

The British pound has initially rally during the course of the trading session on Tuesday but has given up those gains near the ¥150 level. After the nasty looking candlestick from Monday, it does suggest that perhaps we will have further downside ahead, which makes quite a bit of sense as we get closer to the bond payment due from Evergrande, which is front and center when it comes to risk appetite. With that in mind, keep in mind that the Japanese yen is considered to be a “safety currency”, and therefore this pair does tend to be very sensitive to risk appetite overall.

GBP/JPY Video 22.09.21

If we were to turn around a break above the ¥150 level, then I think we go looking towards ¥151, which is where the nasty selloff began on Monday. With that being the case, it is very likely that we see selling pressure yet again. To the downside, if we were to break down below the ¥149 level, it could open up a move down to the ¥145 level, possibly even the ¥140 level after that. When you look at the longer-term chart, you can make an argument for a “complex head and shoulders”, which of course is an extraordinarily negative turn of events.

Quite frankly, this is a very sickly looking chart, and therefore if we are to look at the overall attitude of the markets in general, this could be an excellent place to express a negative and fearful attitude when it comes to global markets. That being said, I would be very hesitant to get overly bullish of this market anytime soon, because it is clearly struggling overall.

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

GBP/JPY Price Forecast – British Pound Testing ¥150

The British pound has broken down significantly during the course of the trading session on Monday as it was a “risk off” type of scenario. Ultimately, this is a market that looks as if it is trying to press lower to break through a significant support. The ¥150 level extends support all the way down to the ¥149 level, and if we break down below there then it really starts to break down quite drastically.

GBP/JPY Video 21.09.21

The size of the candlestick certainly suggests that we have quite a bit of negativity here, and therefore I think it is probably only a matter of time before we break through the bottom. If we do, that is a sign that we are going to go much lower, as it could very well open up a move down to the ¥145 level, maybe even the ¥140 level over the longer term.

On the other hand, if we took out the candlestick from the Monday session to the upside, that could be a very bullish sign. Nonetheless, I think the one thing you can probably count on is a lot of noisy behavior, so I think that if we rally from here, it is very likely that it is time to start fading short-term rallies that show signs of exhaustion. Keep in mind that the Japanese yen is considered to be a safety currency, and therefore you need to pay close attention to risk appetite in general. As the Americans are starting to lift risk appetite higher, I suspect that this will be more or less a “fade the rallies” type of market.

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

GBP/JPY Weekly Price Forecast – British Pound Has Choppy Week

The British pound has gone back and forth during the course of the trading week, as we have seen quite a bit of confusion. That being said, it is worth noting that this pair is highly sensitive to risk appetite, and therefore we have to pay attention to other markets in general. The Japanese yen is of course considered to be a safety currency, so it is worth paying close attention to. The market falling from here could open up a move down towards the ¥150 level, which extends down to the ¥149 level. All of that is an area that I think that if we break down below, it could open up a flood of selling.

GBP/JPY Video 20.09.21

On the other hand, if we were to break above the top of the candlestick for the week, it is possible that we could go looking towards the ¥155 level above, which is an extreme high that we had recently pulled back from. That being said, you can make a serious argument for a potential head and shoulders pattern forming over the last several months, so it is possible that we could be starting to see cracks in the surface and a potential selloff. Nonetheless, you need to be very cautious about the position size going forward, and only add as it works out in your favor. As far as jumping in with both feet, I would be very cautious about doing so. I think that we will continue to see a lot of choppy behavior, so it is worth noting that we are still at risk overall.

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

GBP/JPY Price Forecast – British Pound Recovers to Close Out Week

The British pound has rallied a bit during the course of the trading session on Friday, after forming a hammer on both Wednesday and Thursday. That being said, there is still a significant amount of resistance above, and that is something that could come into the picture. The ¥152.50 level above is the beginning of significant resistance that extends to the ¥153 level. That is an area that I think will be very difficult to get above, but if we do finally break above there then it would be a major turn of events in this pair, opening up a continuation of the longer-term uptrend.

GBP/JPY Video 20.09.21

On the other hand, if we turned around to break through those hammers, that would be a very negative turn of events to open up the possibility of a move down to the ¥150 level. The ¥150 level is a large, round, psychologically significant figure, as well as the beginning of 100 points worth of support. If we were to break down below the ¥149 level, then I believe that the market unwinds drastically at that point, in a major “risk off” type of event, having people rush into the Japanese yen as it is considered to be a safety currency. At that point, the market is likely to go all the way down to the ¥145 level, maybe even the ¥140 level.

One thing is for sure, this market is going to continue to be very choppy and noisy, so you need to be very cautious with your position size, as it is a market that does tend to move quite rapidly. I will be putting small positions on and then adding as things work out.

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

GBP/JPY Price Forecast – British Pound Continues to Show Hesitation

The British pound has gone back and forth during the course of the trading session on Thursday as the markets are hovering around the ¥151 level yet again. This is an area that has been important a couple of times here over the last few weeks, so at this point in time it is likely that we are going to continue to see a lot of noise right around this level. However, if we break down below the bottom of the hammer from the previous session, then it is likely that the market goes looking towards the ¥150 level. The ¥150 level is an area that I believe offers support all the way down to the ¥149 level.

GBP/JPY Video 17.09.21

To the upside, the market breaking above the highs of the last couple of sessions could open up the possibility of a move towards the ¥152.50 level, which extends all the way to the ¥153 level as a major resistance barrier. At this point in time, the market is likely to see a lot of noisy behavior, as it is highly sensitive to risk appetite. Keep in mind that risk appetite is all over the place right now, so it does make quite a bit of sense that the confusion continues.

If we were to break down below the ¥149 level, then the bottom will open up in this market will start crashing. At that point, the market would probably be reacting to some type of major selloff when it comes to risk appetite around the world. On the other hand, if things stabilize, then it is likely that we bounce from here.

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

GBP/JPY Price Forecast – British Pound Dips to Find Value Hunters

The British pound has dropped a bit against the Japanese yen again during the trading session on Wednesday as we have seen quite a bit of weakness over the last 48 hours or so. This is a market that I think continues to see a lot of noisy behavior, and of course will move based upon risk appetite as per usual. Furthermore, there has been a major disruption of power in the United Kingdom, so whether or not that ends up being a major factor on what happens next in the British pound remains to be seen.

GBP/JPY Video 16.09.21

This pair is highly sensitive to the overall risk appetite of markets, so pay attention to things like stock markets and commodity markets get an idea as to how much risk traders are willing to take on. The higher the risk, the higher this pair typically goes as the Japanese yen is considered to be a major “safety currency.”

All of that being said, if we turn around a break down below the bottom of the candlestick, then it opens up a move to reach towards the ¥150 level. That being said, markets in general have been very choppy as of late, although they have been trending in more of a “risk off” attitude recently, so pay close attention to short-term charts, and of course that massive resistance barrier near the ¥152.50 level. If we were to break down below the ¥150 level, then we start to challenge the 100 pips of support that extends down to the ¥149 level.

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

GBP/JPY Price Forecast – British Pound Reaches Major Resistance Against Yen

The British pound has rallied against the Japanese yen during the trading session on Tuesday to show signs of strength yet again. However, there is a significant amount of resistance right here at the ¥152.50 level that extends to the ¥153 level. Because of this, the market pausing in this area is not a huge surprise. Because of this, if we were to break above the ¥153 level, then it is likely that this market goes much higher.

GBP/JPY Video 15.09.21

On the other hand, if we turn around and show signs of exhaustion, we could go right back towards the ¥150 level again. That is an area that show significant interest, so breaking down below that level would of course be a very negative sign, perhaps opening up a major sell off. Remember, this pair is highly sensitive to risk appetite, so therefore if it breaks down that typically means that there is a lot of negativity going on around the world in general. You will know this when you see it, and therefore it will not be much of a surprise as other markets will be falling apart such as stock indices and other risk appetite situations.

We are getting close to a major inflection point, so be cautious about your position size, and only build up as the trade works out in your favor. With that in mind, paying close attention to this pair could give you a bit of a “heads up” as Howell to trade other risk appetite related pairs.

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

GBP/JPY Bounce is Expected

We can see that the JPY generally is weakeningThe structure of the GBPJPY is looking more bullish than bearish. Pay attention to a possible bounce. 152.10 is the zone where we could expect it. Targets are 152.35 followed by 152.50 and 152.70. At this point only the break above the trend line is needed to confirm the bullish momentum.

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

Cheers and safe trading,

Nenad

 

GBP/JPY Weekly Price Forecast – Dragon Continues to Press Higher

The British pound initially pulled back against the Japanese yen during the trading week, but then turned around to show signs of strength again. By doing so, the market looks as if it is trying to break out to the upside, which would be very good for risk appetite in general. Quite frankly, when you look at the daily chart, it is a little more convoluted as the market looks as if it is still stuck in some type of complex head and shoulders. In other words, I think this is going to be a very difficult market to hang on to in the short term. Longer-term, we should get a reasonable signal rather quickly.

GBP/JPY Video 13.09.21

To the downside, I still see the ¥150 level as a 100 PIP support region that will keep the market propped up. If we were to break down below that area, things could get rather ugly, and we would sell off rather drastically. On the other hand, if we clear the ¥153 level then we are likely to go looking towards the ¥155 level again. This is an area that has been like a bit of a “brick wall” as of late, but I do think that it is only a matter of time before we break through there if we continue to press the issue. Either way, keep an eye on other markets overall, because it could give you an idea as to where this market will go based upon risk appetite alone as the Japanese yen is considered to be the ultimate safety currency.

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

GBP/JPY Price Forecast – British Pound Breaks Out of Recent Consolidation

The British pound has rallied against the Japanese yen during the trading session on Friday to reach towards the ¥152.50 level. There is a significant barrier that extends all the way to the ¥153 level, so it will be interesting to see whether or not we can break out. If we do, then this will be an extraordinarily bullish sign for this pair, and it is almost certain that we would go looking towards ¥155 level.

GBP/JPY Video 13.09.21

However, if we pull back then we may have to re-consolidate in what has been a very sleepy market as of late. We have yet to make a “higher high” in this market, and therefore should keep in mind that the markets will continue to look at this through the prism of “risk on/risk off.” As long as we are in a relatively decent frame of mind from a risk appetite standpoint, this is a pair that will do well. However, if there is some sudden concern out there, then this pair would almost certainly get sold off rather drastically. Keep in mind that this is a pair that does move rather quickly, so you need to be cautious with your position size but understand that once the trade works out in your favor, you should start to add as the prophets can build up rather quickly.

The Japanese yen is considered to be one of the premier safety currencies, so that of course is something that you should pay attention to as well. That being said, if we see a sudden selloff in stock markets or the like, then you probably need to get short of this pair or at least not be long.

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

GBP/JPY Price Forecast – British Pound Continues Choppy Behavior Against Yen

The British pound has gone back and forth during the course of the trading session on Thursday as we continue to hang around the ¥152 level. This is an area that of course is familiar to traders, as we have continued to go back and forth in this general vicinity of the last week or so. The ¥152.50 level above is significant resistance, and the top of that is probably closer to the ¥153 level. That being said, every time we pull back it seems as if there are buyers willing to get involved in this market.

GBP/JPY Video 10.09.21

The candlestick of course shows that there are willing buyers underneath, but we simply cannot break out to the upside, so I think at this point we are building up pressure. The question is whether or not the buyers can continue to build up this pressure to finally break out, or will they run out of momentum? One thing is for sure, sooner or later the market will break apart to the downside if this keeps up, so this is a market that desperately needs to see some type of impulsive candlestick. I would base any trade at this point on a daily close, because you can see just how choppy we have been over the last couple of days.

The most recent swing high at the ¥153 level needs to be broken out above in order for the buyers to take completely over, but if we break down below the lows of the last couple of sessions, we could drift towards the ¥150 level. The ¥150 level is an area that I think would be important as it is a large, round, psychologically significant figure.

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

GBP/JPY Price Forecast – British Pound Continues to Chop Back and Forth Against Yen

The British pound went back and forth during the course of the trading session on Wednesday, as we have continued to try to get a bit of a grasp on the idea of going higher. The ¥152.50 level has been massive resistance, so if we could break above there then we can challenge the ¥153 level, where we had sold from previously. When I look at the longer-term chart, it is hard not to notice that we have a little bit of a complex head and shoulders, so that is something to be very well aware of from a longer-term standpoint.

GBP/JPY Video 09.09.21

If we can make a fresh “higher high”, then I think that kills off the idea of the complex head and shoulders, but if we were to turn around a break down below the ¥149 level, that could signify a massive selloff going forward. That obviously is not going to happen very easily, and I do not expect that to happen in the next 24 hours. However, when I look at this chart that is something that I always have in the back my mind.

Keep in mind that this pair is highly sensitive to risk appetite, and therefore you need to pay attention to how the stock markets overall are doing. In a scenario where everything start selling off, this pair will do the same thing. On the other hand, if we start to see a lot of risk appetite out there willing to take advantage of the market, then this pair should rally rather significantly. In general, I think this continues to be very difficult in the short term, but eventually we will get a bit of clarity.

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

GBP/JPY Price Forecast – British Pound Shows Confusion Against Yen

The British pound has gone back and forth during the course of the trading session on Tuesday as we continue to see a lot of volatility. Nonetheless, this is a market that I think is struggling with the idea of whether or not we are going to form a “higher high”, or are we going to simply roll over and go looking towards the ¥150 level? Because of this, the market is going to continue to see a lot of noisy behavior but at the end of the day this is going to be one of the more thought-provoking pairs, due to the fact that it is so highly sensitive to risk appetite around the world. This is not just simply a matter of the British pound or the Japanese yen, but whether or not the world economic situation is getting better or worse.

GBP/JPY Video 08.09.21

The shape of the candlestick as I record this video shows a little bit of neutrality but notice how the couple of days preceding this candlestick showed very similar behavior. In other words, it looks as if the market is trying to find enough selling pressure to go lower. With that in mind, I think that what we will see next is a move lower, but I cannot guarantee that obviously. Because of this, I would be short of this market with a very small position at best, only adding once we break down through each major round figure. Because of this, the market is likely to be very noisy, but once we get some type of clarity, I think we are going to see a major move in one direction or the other.

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

GBP/JPY Price Forecast – British Pound Pulls Back From Significant Resistance

The British pound has initially tried to rally during the trading session on Monday but has given back some of the gains to form a somewhat negative candlestick. That being said, it is probably more about the risk appetite of traders around the world than anything else. Furthermore, you need to keep in mind that Labor Day holiday was being celebrated in both the United States and Canada, so there is not much in the way of liquidity once the Europeans go home.

GBP/JPY Video 07.09.21

One thing that is worth paying attention to is the fact that there was a lot of selling pressure just above, so short-term pullback would make a certain amount of sense. To the downside, the ¥150 level would be a target from what I can see, as it is a large, round, psychologically significant figure and of course an area that a lot of people would be paying close attention to anyway due to the fact that traders in general will look towards the big figures as areas that large money probably comes back into the market. If we were to break down below the most recent low though, that for me that signifies that we are going much lower, perhaps due to some type of external influence, which of course is always a threat in this pair as it is so highly volatile.

I suspect that the next couple of days will be crucial in determining where we go next, and that is one of the most important things to keep in the back of your head. With this, I believe that the market has a lot of decisions to make over the next couple of days and therefore your position size should be relatively small to begin with.

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

GBP/JPY Weekly Price Forecast – British Pound Reaches Towards ¥152

The British pound has rallied significantly during the course of the trading week to reach the ¥152 level. The ¥152 level is an area that offers resistance for about 100 pips and is essentially “fair value.” Ultimately, if we see some type of risk off type of event, we could turn this market right back around. On the other hand, if we see plenty of risk appetite out there, that will turn the market around and finally scented above the ¥153 level.

GBP/JPY Video 06.09.21

Keep in mind that the last week of August tends to be one of the biggest holiday weeks for traders, and therefore you should pay close attention to the idea of liquidity coming back and changing everything. This is a market that will continue to be somewhat noisy, but ultimately I think we have to make a bigger decision. If we were to break down below the lows of the previous week, that would be an extraordinarily negative turn of events. Right now, that does not seem to be the case, so I am not so concerned about it.

There is a bit of a complex topping pattern playing out on the daily chart, but on the weekly chart it is not as clear. Nonetheless, I think we have a couple of weeks’ worth of chopping around and struggling to do before we truly get some type of clarity that we can start putting serious money to work against. That is of course what we are going to have to pay close attention to, simple risk appetite at this juncture. Pay attention to the commodities markets and of course the stock markets to give you an idea as to what traders may be thinking.

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

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.

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