British Pound Gives Up Early Gains Against Yen

The British pound initially rally during the trading session on Thursday but gave back gains to show a bit of hesitation. At this point, the market looks like it could drop towards the ¥155 level, an area that has been important more than once, so it will be interesting to see how this plays out. Ultimately, I think this is a market that will eventually find buyers, but if we get a significant break down below that ¥155 level, that could unleash quite a bit of selling pressure like we had seen the last time we rallied so significantly.

GBP/JPY Video 21.01.22

On the other hand, if we turn around and break above the top of the candlestick for the trading session on Thursday that would be a very bullish sign and could see a lot of buying pressure jump back into the trading session. All things being equal, it is possible that we see that, due to the fact that we have seen so much in the way of bullish pressure recently. Ultimately, I think this is a market that will come down to whether or not we have risk appetite.

Keep in mind that this pair is highly sensitive to the risk appetite of markets in general, as the Japanese yen is considered to be a safety currency, while the British pound is a little bit more bullish as far as risk is concerned. This pair is highly volatile, so you need to pay attention to that as well, so I would keep my position size relatively small until we get some of this volatility out of the markets.

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British Pound Bounces After Initial Selloff

The British pound has initially sold off during the trading session on Wednesday to reach down towards the ¥155.50 level, before turning around and showing signs of life again. Ultimately, this is a market that I think is trying to find its footing and if risk appetite picks up a bit, that could help it happen as well. As long as we can stay above the ¥155 level, it is very likely that this market will continue to find buyers on every short-term debt.

GBP/JPY Video 20.01.22

To the upside, the ¥157.50 level more than likely will be resistance, and of course the target. That being said, I would anticipate seeing a lot of noisy behavior, which is typical for this pair anyway. Keep in mind that this market has gone parabolic recently, so a little bit of working off of the froth makes quite a bit of sense. On the other hand, if we were to break down below the ¥155 level, it could be a very negative turn of events, probably tied together with the idea of a general “risk off” market in general.

Any break down below there could open up a move towards the ¥152.50 level, and then possibly the ¥150 level after that. Keep in mind that the market recently went parabolic and then did exactly that. Because of this, is very possible that we could continue to see a huge and volatile range, but obviously we would need to see some type of catalyst. At this point, it looks like the British pound continues to be very strong in general, so I think that will continue to be the case here as well.

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British Pound Gives Up Early Gains in Fear-based Trade

The British pound has initially tried to rally during the trading session on Tuesday, but then broke down rather significantly. The ¥155 level underneath continues to be an area that people will pay attention to, as it is a large, round, psychologically significant figure and of course an area where we have seen a lot of noise in the past. At this point in time, the ¥155 level is essentially my “line in the sand”, as whether or not I want to be long or short of this market. Ultimately, this is a market that I think will continue to see a lot of noise, due to the fact that it is so highly driven by greed and fear.

GBP/JPY Video 19.01.22

If we do break down below the ¥155 level, it could be a repeat of the last time this market spiked and went parabolic, only to fall apart. At this point, I think we probably have the ability to break down rather rapidly if that does happen. On the other hand, if we turn around and bounce from the ¥155 level, then the market should go back towards the highs again as it would show resiliency and perhaps even build a bit of a bullish flag. Ultimately, you need to keep your position size relatively small in this type of environment, as the markets are very skittish and of course this could cause a major issue.

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British Pound Tries to Reenter Consolidation

The British pound has shot higher during the trading session on Monday, to reach back into the previous consolidation area that had been so important over the last couple of weeks. That being said, the market has given back quite a bit of those gains to show a less than impressive candlestick. Nonetheless, this is a market that you cannot short anytime soon because quite frankly it has been so strong over the last several weeks. I believe that the ¥155 level underneath will continue to be important, so pay close attention to that area. If we reach back to push that area, it could give us a bit of a heads up as to where we are going next.

GBP/JPY Video 18.01.22

The British pound against the Japanese yen is a highly sensitive pair when it comes to risk appetite, so you need to pay close attention to what is going on around the world. Ultimately, this is a market that I do think eventually will find enough momentum to make some type of decision, but right now it is obvious that we just do not know what to do. If we were to break down below the ¥155 level, that can send this pair much lower, but until we smash through that level, I think that we have a situation where you have to look it dips as potential buying opportunities, assuming that the other markets around the world are doing fairly well. Keep in mind that we recently tested the ¥158.50 level, so that is an area worth paying close attention to.

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British Pound Pulls Back Against Yen Toward Support

The British pound has initially tried to rally during the course of the week but found resistance at the familiar ¥157.50 level to pull back against the Japanese yen. It should be kept in the back of your mind that the Japanese yen is considered to be a major safety currency, so therefore if there is a run towards safety, this pair will fall. Furthermore, you can make a strong argument that the British pound itself is a little overbought, not only against the Japanese yen, but against almost all other currencies. Because of this, it is not a huge surprise to see how this market is behaving. If we continue to see the fear out there that we have seen over the last several sessions, this pair will almost certainly slice through the ¥155 level and then go much lower.

GBP/JPY Video 17.01.22

To the upside, if we can take out the ¥157.50 level to the upside, that would be an extraordinarily bullish sign and have this market looking towards the ¥160 level given enough time. I do not necessarily think that is going to be easy to do, but it is a very real possibility that you need to keep in the back of your mind. I think the most important thing you can do with this pair right now is keep your position size small, because quite frankly it is going to get thrown around like a ragdoll in this type of environment. The pair used to be known as the “Dragon”, and I think we may see more Dragon like behavior going forward, so it is probably worth being as cautious as possible.

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British Pound Gets Hammered Against Japanese Yen

The British pound has fallen rather hard against the Japanese yen during the trading session on Friday, as we have broken down towards the ¥155.50 level at the time of writing. Breaking out of that consolidation way up high makes a certain amount of sense, but the question is whether or not this is going to be a short-term pullback, or if it will lead to something bigger? At this point, it is probably too early to tell, so I will be paying special attention to the ¥155 level, as it is a place where we should see a certain amount of support and of course value hunting. If we do not see it there, then I think we could very well repeat the move that we had after the attempt to get parabolic last time.

GBP/JPY Video 17.01.22

If we do bounce from the ¥155 level, then it is probably only a matter of time before we turn around and try to reach to the upside. That being said, I do not expect an easy bounce from this area. It will come down to whether or not risk appetite can pick back up, as it is a big deal as to where we go next. Ultimately, this is a market that I think continues to see a lot of volatility, so you need to be very cautious about the amount of money that you are trading. Quite frankly, this is a market that will continue to be very noisy so therefore safety is your first concern when it comes to this market. This is all about risk appetite, which is currently crumbling as I record this.

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British Pound Continues Consolidation Against Japanese Yen

The British pound has gone back and forth during the trading session again on Thursday against the Japanese yen as we continue the same consolidation that we have been in for two weeks. This is not a huge surprise, considering just how parabolic the market had been, so the question now becomes whether or not we are simply consolidating before making a bigger move higher, or are we in a “distribution phase?”

GBP/JPY Video 14.01.22

If we are in a distribution phase, a break down below the ¥155 level would certainly confirm that, and we would probably see a repeat of the last time we went parabolic, meaning that we could drop all the way down to the ¥150 level. Keep in mind that this pair is highly sensitive to risk appetite, so that comes into the picture as well. By watching other markets, you can get a feel for whether or not this market should be going higher or lower.

Alternately, if we can break above the ¥158.50 level, that clears all resistance and sends this market much higher and probably more of a parabolic “buy-and-hold” situation where we go looking towards the ¥160 level rather quickly. I do not necessarily like that move, at least not without working off quite a bit of the froth that we have seen over the last couple of weeks. Quite frankly, I even like the idea of buying a pullback closer to the ¥155 level, because that is my “line in the sand” when it comes to this pair. All things being equal, you will have to be cautious over the next couple of sessions.

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British Pound Continues to Elevate

The British pound has rallied a bit during the course of the trading session on Wednesday to reach towards the ¥157.50 level rather early. That being said, there is a ton of resistance above so be interesting to see if we can break out. If we were to clear the ¥158.50 level, this thing will continue to go much higher, and it becomes more of a “buy-and-hold” type of market. With that being the case, I would be very cautious, and I certainly do not like the idea of buying all the way up here. Chasing the trade is a great way to lose a lot of money, so please keep that in the back of your head.

GBP/JPY Video 13.01.22

To the downside, the ¥156 level seems to be supportive, so you should pay close attention to that as well. All things being equal, this is a market that had gone a bit parabolic, so we need at the very least to work off some of the froth that had been in this market for quite some time. Underneath, we have the ¥155 level as support, and I think which will end up being a bit of a “bottom in the market” at this point in time.

If we were to break down below there, then it could break down significantly at that point and could even change the overall trend. After all, when you look at the past, we had a very bullish parabolic move just as we have had recently, only to break back down. At this point, I think this is a market that continues to see a lot of noisy behavior, but if it breaks out I will probably short the Japanese yen against something else like the Aussie dollar which has to play a bit of “catch-up.”

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British Pound Rallies Against Japanese Yen Again

This is a pair that has been parabolic until the last several sessions, so be interesting to see if we work off that parabolic move, or if we turn around and start falling apart. After all, we have gotten a bit ahead of ourselves but at this point in time we are not showing signs of breaking down. If we do pull back, I think the ¥155 level will be an area that will attract a lot of attention, and therefore may have to be paid close attention to. Ultimately, this is a market that I think continues to be very noisy and of course will move based upon the latest either “risk on” move, or the latest freak out.

GBP/JPY Video 12.01.22

Keep in mind that the Japanese yen is considered to be a safety currency, so it does make a certain amount of sense that we would see the Japanese yen strength and if we do get some type of major move in equity markets or the like. That being said, we did see a nice recovery late during the day in America, so that has a little bit of “risk on” flavor out there, which is part of what has lifted this pair. If we were to break above the ¥158.50 level, then we will probably continue to go looking towards the ¥160 level. All things being equal though, I do like the idea of some type of pullback instead of working off the froth, because at least then you can make an argument for value. The last time we behaved like this, we ended up giving up all of the gains, so keep that in mind.

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GBP/JPY Price Forecast – British Pound Pulls Back From Sky High Levels

The British pound has pulled back against the Japanese yen during the Monday session as perhaps we have gotten far too ahead of ourselves. That being said, it does make a certain amount of sense that we see this pullback towards the ¥155 level, but whether or not we can reach all the way down there might be a different question. All things being equal, this is a market that I think will find plenty of buyers on dips, but if we were to give back that ¥155 level, it could change some things. At that point, I think you may see a return to what we had just a few months ago.

GBP/JPY Video 11.01.22

The big question now is whether or not this market can continue to break out, or are we simply in a major consolidation area? I think at this point in time it is probably still a bit early to suggest one or the other, but clearly you cannot be shorted this market anytime soon. Keep in mind that the pair does have a high correlation to risk appetite, so we need to keep in mind that you probably need to pay attention to multiple other markets at the same time.

The ¥158.50 level above seems to be the absolute ceiling in the market, but if we were to break above there then it would obviously become even more parabolic, something that I would not like to see simply due to the fact that the higher a market gets in a short amount of time, the more violent the pullback tends to be.

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GBP/JPY Weekly Price Forecast – British Pound Continues to Shoot Straight Up in the Year

The British pound has been on fire against the Japanese yen over the last several weeks, and this of course has not changed. At this point in time, it is very likely that we will continue to see noisy behavior, but if we can break above the ¥158.50 level, that would be an extraordinarily bullish turn of events. At that point, I would anticipate that the market goes looking towards the ¥160 level, but we have gotten so parabolic that I would be nervous about a move like that. Quite frankly, I think we desperately need some type of pullback in order to get involved in this market as it is so overdone.

GBP/JPY Video 10.01.22

The ¥155 level is a good target for support in my estimation, and I think that any pullback towards that area should offer quite a bit of interest. Ultimately, as long as that holds it looks like we will break out to the upside. If it does not, then the ¥152.50 level would more than likely be the next target. At that point, I would anticipate a significant amount of support, but it would then open up the door to the ¥150 level if we break down below it.

As you can see, we are in an uptrend longer term, and have been consolidating. However, the last three weeks have been so parabolic it does make me a bit nervous about buying. Ultimately, I think this is a market that will move right along with risk appetite, so pay attention to indices around the world, commodities, and other risk appetite related currency pairs in order to get a little bit of a “heads up.”

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GBP/JPY Price Forecast – British Pound Continues to Hover at High Levels

The British pound has initially tried to rally just a bit during the trading session on Friday but gave back gains as we continue to hang about the ¥157 level. This is a market that has gone parabolic so it will be interesting to see whether or not we can continue to make this type of move. Sooner or later, momentum will run out and we will get a pullback. Quite frankly, if you are bullish of this pair, you desperately needs some type of pullback to offer value that you can take advantage of. Chasing the trade all the way up here is a great way to lose money, but you can use this chart for an indicator if nothing else. In other words, what I am suggesting is that you can take a look at the Japanese yen across-the-board and perhaps buy something else against it.

GBP/JPY Video 10.01.22

To the downside, the ¥155 level is going to continue to be a potential support level, so I would most clearly pay close attention to that area if we do pull back. That being said, if we give up the ¥155 level, then we very well could find this as a situation like the last time we went parabolic, we just simply fell right back down to the ¥150 level. The question now is not so much as to whether or not you should be shorting yet, but whether or not we are simply carving out a huge range based upon the last couple of parabolic spikes? Alternately, if we do break above the ¥158.50 level, this market will go absolutely stratospheric at that point.

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GBP/JPY Price Forecast – British Pound Pulls Back From Lofty Levels

The British pound has gotten hammered during the trading session on Thursday to reach down towards the ¥156 level. Ultimately, this is a market that is very bullish, but desperately needed a pullback due to the fact that we had gotten far ahead of ourselves when it comes to rising. In fact, the market has already gone parabolic like this recently, but then crashed from there. At this point in time, the market is likely to continue to go lower, due to the fact that gravity has to come into the picture sooner or later. That being said, we have had a significant bounce in the middle the day, so it will be interesting to see whether or not it actually comes to fruition.

GBP/JPY Video 07.01.22

If we do break down below the Thursday candlestick, I think that leads this market towards the ¥155 level, and then breaking down below there probably wipes out this entire move before it is all said and done, just as we had seen previously. Ultimately, this is a market that has been very violent multiple times over the last several months, so none of this should be a huge surprise. On the other hand, if we break above the ¥158.50 level, then it is possible that we could continue to go higher, but quite frankly I do not like the idea of doing that right away due to the fact that we simply have gone straight up in the air and therefore the correction will become even more drastic in that type of situation. Regardless, I think the healthiest thing that could happen here as a bit of a pullback.

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GBP/JPY Price Forecast – British Pound Continues to Levitate at High Levels

The British pound has gone back and forth during the course of the trading session on Wednesday as we are hanging about the ¥157 level. This market continues to be a bit parabolic, so at this point in time I would hope to see some type of pullback to reach towards support or at the very least sanity. The ¥155 level is an area I would love to see this market pullback towards, but right now it does not show much in the way of wanting to do so.

GBP/JPY Video 06.01.22

Above, the ¥158 level has been resistance previously, which was during the most recent highs from the previous parabolic move. That being said, the real question now is going to be “Will we have a repeat of the last time we did this?” It is because of this that I am cautious, and I certainly would not be chasing the trade all the way up here, because quite frankly that is a great way to lose money. The risk to reward ratio is so skewed in the favor of losing that you cannot chase.

Keep in mind that this pair is highly sensitive to risk appetite and of course you need to pay attention to other markets to give you an idea as to where we are going to go here. The more general risk appetite out there, the more likely we would see this market rally. That being said, it is worth noting that this market has gone straight up in the air while most indices have been positive yet somewhat muted.

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GBP/JPY Price Forecast – British Pound Continues to Launch Into Space

The British pound has shot straight up in the air again on Tuesday, in what is becoming an extraordinarily dangerous market. The only reason I say this is that the word parabolic is the first thing that I see when I look at this chart. That being said, I think the possibility of a major pull back it is very real. The ¥155 level at this point in time will more than likely end up acting as a floor in the market, so I would love to see that area be tested. However, there is nothing on this chart that remotely suggests that we are about to see that happen.

GBP/JPY Video 05.01.22

To the upside, the ¥158 level is an area that will cause some resistance based upon previous trading, but when you look back to the last time we reached this level, we went straight up in the air then as well. I am afraid that might be the same path that we are taking. It will be interesting to see how this plays out but clearly there is a fight on our hands and the fact that we went straight up in the air does not help the situation at all.

Keep in mind that this pair is highly sensitive to risk appetite in general, so that could come into the picture as well. Nonetheless, eventually gravity has to be recognized, so that is why I am sure a pullback is coming. You simply cannot chase this market all the way appear, because it is a recipe for disaster. That being said, there is nothing on this chart that suggests you should be shorting it either.

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GBP/JPY Price Forecast – British Pound Gives Up Early Gains to Kick Off Year

The British pound initially tried to rally during the day on Monday but then gave back gains as the overextension of the market has become far too obvious. Ultimately, the market needs to pull back a bit if nothing else in order to build up a bit of momentum. Also, you need to keep in mind that some of the action that we may have had in December may have had a little bit to do with anything other than short covering. Regardless, the market looks as if it is trying to figure out where to go next, because quite frankly to go straight up in the air from here seems to be a bit of an extreme move.

GBP/JPY Video 04.01.22

Underneath, I believe that the ¥152.50 level would be an excellent set up, but it would also be a rather extreme pullback. The 50 day EMA sits just above there, so it does make a certain amount of sense there would be a lot of technical support. Regardless, we desperately need to pullback in order to continue to the upside, or perhaps even break down a bit due to the fact that we are overbought. Either way, I do not have any interest in trying to buy this pair, because chasing the trade all the way appear would be a very dangerous thing to do. Take a look at the last time we rallied like this. We reached all the way towards the ¥158 level, and then collapsed. It would not surprise me much to see something like that happen yet again, because this pair is obviously lost at this point in time.

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GBP/JPY Price Forecast – British Pound Breaks ¥155

The British pound has broken above the ¥155 level during the course of the week, and what would have been an obvious parabolic move. Now that we have cleared this area, it does suggest that this pair is going to continue to go much higher, although a little bit of a pullback would make a certain amount of sense. The ¥152.50 level underneath should be the floor in the market at the moment, but quite frankly I might be a bit surprised if we pull back that far. Nonetheless, keep in mind that this pair is highly sensitive to risk appetite so that will have its say as to what we do.

GBP/JPY Video 03.01.22

If we decide to suddenly take off to the upside again, then reaching the highs would almost be a given at this point. Nonetheless, it will be interesting to see how this plays out and a lot of it will probably have to do with the Japanese yen in general. Pay close attention to how JPY is behaving against most other currencies, because that may make this thing moving to the upside rather quickly. The first week or so of January mining to be a little bit of a hesitation, but by the time we get through the first week, traders will have their books build back up, and therefore it is likely that we would see a little bit more clarity later in the week than in the beginning. The pair has had a very parabolic run, so I do think that a little bit of a pullback is probably quite welcome for most people, even those who are wanting to get long.

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

The British pound had gapped a little bit lower but turned around to shoot straight up in the air initially during the day on Friday. After that, they have sold this thing off to make it reach towards the ¥155 level again. If we can break down below the ¥155 level, that is very likely that this market will then start to unwind quite drastically, which is something that I think is desperately needed considering how ridiculous this move has been. A lot of it probably had to do with the lack of liquidity but when you look at the overall attitude of this pair for the last several months, it has been nothing but violent swings back and forth.

GBP/JPY Video 03.01.22

The 50 day EMA is all the way down at the ¥152.50 level and is curling higher. I think at the very least we could see a move towards that area assuming that we do get that breakdown. On the other hand, if we continue to see this parabolic move happen, then the market could go looking towards the ¥157 level. Market participants will continue to be very erratic but keep in mind that this pair is highly sensitive to risk appetite and therefore you have to pay attention to how that is going to get a feed on what may happen here. Ultimately, this is a market that will eventually have to stabilize, but if there is one thing you can take a look at this chart and deduce in the meantime, is that we are most certainly overbought at this point.

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GBP/JPY Price Forecast – British Pound Continues to Ignore Gravity

The British pound has rallied again during the trading session on Thursday to break above the psychologically and structurally important ¥155 level. This move has run much further than I would have ever guessed, especially considering the time of year where we are in. Part of this may be due to the fact that the United Kingdom chose not to lock itself down, or it might just be liquidity having its say as well. Either way, this pair has been over the top as far as the volatility is concerned for the last couple of months, and at this point I do not know if that is going to change.

GBP/JPY Video 31.12.21

Keep in mind that “risk on” in this market means that we are going higher, as the Japanese yen is considered to be a safety currency. The pair is overextended regardless of how you look at it, but at this point in time it is obvious you cannot short the market. Having said that, you cannot necessarily chase it either. This is one of those situations where we need the market to stop this behavior and set up for a trade. Right now, I just do not see what is going to take, but once we get through the jobs number next week it could give us an idea as to where we go for a bigger move.

Underneath, the 50 day EMA sits at the ¥152.50 level, and is curling higher. Because of this, I think that is the current “floor the market”, assuming that we can even fall that far. Either way, this pair desperately needs to pull back before we can put any money to work.

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GBP/JPY Price Forecast – British Pound Continues to Hover at Higher Levels

The British pound has done very little during the trading session on Wednesday as we continue to hang around the ¥154.50 level. The ¥155 level above is massive resistance, and the fact that we got here almost overnight probably means we need to take a bit of a breather. When you look at the last several months in this pair, you can see just how erratic things have been so I suspect the market is probably exhausted at this point. Furthermore, liquidity is going to be an issue so I am not willing to put a bunch of money to work right now.

GBP/JPY Video 30.12.21

However, when we get back to work and start trading with real volume, then we might be able to make a move. The nonfarm payroll Friday announcement of course will have a major influence on risk appetite in general, so I suspect that will probably be when things open up quite a bit. The first week of January is always a little odd anyway, as traders are trying to strategize how they want to put on risk for the year.

Ultimately, this pair looks like it wants to go higher but you can see that every time it looks like we got our direction clear, the thing turnaround over the last several months. With that, it is going to come down to risk appetite more than anything else, which is quite often the case with this pair to begin with. Remember, the Japanese yen is considered to be an ultimate safety currency, so if there is a sudden large amount of concern around the world, that will pummel this pair.

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