GBP/JPY Price Forecast – British Pound Continues to Climb Slowly

The British pound has rallied a bit during the course of the trading session on Thursday to reach towards the upper part of the candlestick from Wednesday which of course was a shooting star. At this point, the market looks as if it is trying to get to the ¥152.50 level, an area that has been significant resistance in the past. With that being the case, the market is likely to continue to see it as important. Ultimately, this is an area that I think will be very difficult to break, but it certainly looks as if we are trying to get to that region.

GBP/JPY Video 03.09.21

However, if we break down below the candlestick from the Wednesday session, that could send this market lower, possibly opening up a move down to the ¥150 level. The ¥150 level will be significant support that extends down to the ¥149 level. That is a major barrier, because if we break down below there it is likely that the market falls rather hard, perhaps reaching towards the ¥145 level, maybe even as low as the ¥140 level.

All that being said, the market does not look likely to pull back after this last couple of days, but it does not necessarily mean that we are going to shoot straight up in the air as well. In general, this is a market that will move back and forth with risk appetite, so obviously Friday will probably be a very noisy day. Whether or not it is a trend defining candlestick is a completely different question.

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GBP/JPY Price Forecast – British Pound Trying to Break Out

The British pound has rallied a bit during the course of the trading session on Wednesday to break above the ¥151.50 level, showing signs of strength again. At this point in time, the market is likely to see quite a bit of noisy behavior, so it will be interesting to see whether or not we can continue to go higher. Quite frankly, this is a market that I think will continue to ask a lot of questions and look towards the potential double bottom underneath as a major support level.

GBP/JPY Video 02.09.21

If we break down below the double bottom, the market could break down quite drastically, perhaps reaching towards the ¥145 level, maybe even down to the ¥140 level. On the other hand, if we turn around a break above the ¥152.50 level, that could send the British pound towards the ¥155 level. All things been equal, this is a market that I think will continue to be very difficult to navigate. If we get a major “risk on” type of event, then it is likely that we will see this pair move right along with it. On the other hand, if we were to see the markets in general selloff, this pair will break down quite drastically as well.

I suspect that the next couple of weeks are going to be very volatile, and therefore I think that you need to be cautious about position sizing, unless of course the market starts to move in your favor, then you can start adding. Because of this, this is a market that is going to continue to be one that you have to be cautious with, but eventually we should get a bit of clarity.

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GBP/JPY Price Forecast – British Pound Struggles Yet Again

The British pound has rallied initially during the trading session on Friday but then turned around to form a little bit of a shooting star. Nonetheless, this is a market that is extraordinarily range bound right now, and I believe that as it is the most popular vacation week for bankers around the world, we will continue to see very tight range currency pairs, this one included. Beyond that, we also have the jobs number coming out on Friday which could be a major “risk on/risk off” type of event, and that obviously would influence this pair as the Japanese yen is considered to be the ultimate “safety currency.”

GBP/JPY Video 01.09.21

With that, if we were to break above the ¥151.50 level, we could make a move towards ¥152.50 area above, where we would see similar resistance appear. The question right now is whether or not we just formed a double bottom, or do we simply balanced in order to make another attempt to go lower? As things stand right now, it is a bit of a 50-50 shot, so you would have to imagine that an impulsive candlestick on a shorter time frame might be the clue as to which way we are going.

To the downside, the ¥150 level is obviously a psychologically important but one would think that another attempt to break down below it could be successful and go looking towards that ¥149 level that had been the bottom part of the “zone of support.” Breaking below that would send this market much lower and a trigger for a longer-term short position would be breaking below the hammer that formed on the daily chart in July. At that point, I would become aggressively short.

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Reversal on USD and JPY

Stocks are rising higher, again. DAX broke an important dynamic resistance and is ready for the new all-time highs.

Gold is slowly climbing up the stairs supported by the weaker USD.

The EURUSD recently broke the upper line of the wedge and is back above the neckline of the H&S formation. That’s very positive and the buy signal is ON.

The GBPNZD broke a combination of three dynamic resistances. That could mean only a sell signal.

The EURJPY is out from the falling wedge pattern. Sentiment is back to positive.

The NZDJPY on the other hand is out from the flag pattern but also to the upside with a proper buy signal.

The GBPJPY is still waiting for its turn. We are in the middle of the symmetric triangle, still waiting for the breakout.

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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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GBP/JPY Week Price Forecast – British Pound Bounces for the Week

The British pound has rallied a bit during the course of the week, recapturing some of the losses from the previous two. That being said, it is becoming very obvious that we are in an area that is significant support, and if we were to turn around a break down from here, it could end up being a very negative and ugly scenario. With this being the case, the market looks very likely to continue paying close attention to the area just below, and as a result I think we are either going to continue consolidating, or we are going to break down.

GBP/JPY Video 30.08.21

When you look at the daily chart, it does not take much imagination to suggest that we perhaps are forming some type of topping pattern, but on the weekly chart it looks a little more consolidated. Because of this, I do believe that it is going to continue to be a very difficult environment to trade, but we should get some type of clarity sooner or later, and once we break either down or above the high from a couple of weeks ago, then we can start to put a little bit more money to work.

Keep in mind that this pair is highly sensitive to risk appetite, so it will come down to sentiment more than anything else. The British pound is a bit “riskier” than the Japanese yen, which is considered to be a major safety currency, so therefore I think what we are seeing here is a scenario where it simply going to come down to how traders “feel” going forward. Pay close attention to other market such as stock indices and commodities to get an idea as to what the risk appetite is.

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GBP/JPY Price Forecast – British Pound Rallies Against Japanese Yen

The British pound has rallied ever so slightly against the Japanese yen during the trading session on Friday, but we have seen a bit of a hesitation at the ¥151.50 level yet again. Because of this, it is very likely that we will continue to struggle to gain traction, but if we do manage to break above the ¥151.50 level, then we will almost certainly go looking towards the ¥152.50 level, an area that we had seen resistance previously.

GBP/JPY Video 30.08.21

When I look at the totality of the market, it certainly looks as if it is trying to form some type of “topping pattern” which of course signifies a lower pricing. At that point, if we can break down below the most recent low, I believe that this market is going to unwind, perhaps going down to the ¥145 level, possibly even as low as the ¥140 level. That obviously would be a very “risk off” type of move, as the Japanese yen is considered to be a bit of a safety currency. In this scenario, I imagine you would see a lot of selling pressure in multiple markets, not just this one. Anything that would have growth attached to it would almost certainly suffer, as a result of the negative attitude.

On the other hand, if we were to break above the recent swing high, then it opens up a potential move towards the ¥155 level, which has been extraordinarily resistive recently. Whether we get above there is a completely different question, but I suggest that perhaps it seems very unlikely any time in the short term as there are so many uncertainties out there.

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GBP/JPY Price Forecast – British Pound Pulls Back Slightly

The British pound initially tried to rally during the trading session on Thursday but has turned around at the 151.50 level to show signs of exhaustion. The market has been very bullish of the last couple of days, so it does make a little bit of sense that we could see the markets run out of momentum. The ¥151.50 level has been previous support, so now it should end up being resistance on the return.

GBP/JPY Video 27.08.21

Looking at this chart, the ¥150 level continues to be an area of interest, as it is a large, round, psychologically significant figure and an area that we have seen a lot of noise. The hammer that formed a couple of months ago just below that level, it makes quite a bit of sense that we would see a big fight here. If we were to break down below that hammer, that opens up massive selling, perhaps reaching down towards the ¥145 level, followed by the ¥140 level. This is most certainly a market that is very sensitive to risk appetite, and if we were to make that move, it would be disastrous.

On the other hand, if we were to turn around a break well above the ¥151.50 level, that opens up the possibility of a move to the ¥152.50 level. Ultimately, this would be a “risk on” type of move and would probably have people looking towards other assets for opportunities to pick up gains as well. All things being equal, I think we are at a tipping point, and the next move could be rather big. However, we need to let the market make its decision first before trying to put a bunch of money to work.

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New Zealand Dollar end The Bearish Correction

The NZDUSD is in a false bearish breakout from the falling wedge pattern. That is possibly a very nice buying opportunity.

The GBPNZD is testing the combination of three important dynamic supports. A breakout can be an amazing sell signal.

The EURJPY broke the upper line of the wedge and is aiming higher with a buy signal.

The GBPCAD is in a giant symmetric triangle on the weekly chart. We will probably have to wait a long time till until the breakout but it will most probably be worth it.

The NZDJPY is in a flag formation. A breakout of its upper line will bring the positive sentiment back.

The GBPJPY is forming a head and shoulders pattern inside of the symmetric triangle pattern. A breakout of the lower line (and the neckline at the same time) can be a good bearish signal and a breakout to the upside can be a signal to go long.

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GBP/JPY Price Forecast – British Pound Pulls Back Slightly

The GBP/JPY level quite often represents the overall risk appetite around the world, and while we did see a significant bounce over the last couple of days, we are starting to run out of momentum. This suggests that we are still continuing to see a lot of questions out there when it comes to whether or not we are going to continue to go higher, as there are a lot of questions when it comes to whether or not we are going to see growth around the world. If we do not see more of a “risk on” type of move, then it is very likely that we will see this pair fall.

GBP/JPY Video 26.08.21

If we break down below the lows from the trading session on Monday, then I think we go looking to test the bottom of the hammer from a couple of weeks back, which was the swing low. If we break down below there, then it is likely that we go looking towards the ¥147.50 level, and then perhaps even the ¥145 level. On the other hand, if we were to turn around a break above the ¥151.50 level, then it is likely that we could go looking towards the ¥152.50 level. That is an area that has been resistance and of course we have sold off quite drastically. Obviously, there should be a significant amount of supply in that general vicinity.

As things stand right now, when you look at the overall action since we broke above the ¥150 level the first time, it certainly looks as if we are struggling and forming a larger “topping pattern.” Because of this, I suspect that we could see quite a bit of negative pressure in the next few weeks.

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

The British pound initially rallied against the Japanese yen in a bit of a continuation when it comes to the risk appetite of this pair, but then turned around to show signs of weakness. The ship the candlestick is a bit of a shooting star as I record this, and that of course is a negative sign. If we were to break back down below the ¥150 level, one would have to think that we could very well challenge the lows again. If we break down below the hammer from several weeks ago, that opens up the trapdoor to much lower pricing.

GBP/JPY Video 25.08.21

It is worth noting that there are a lot of anxieties around the world when it comes to global growth, and that could lead more money into the Japanese yen to begin with. The British pound has also fallen against the Swiss franc during the trading session, so perhaps there are concerns about the Delta variant in the United Kingdom, or maybe it is just a simple expression of risk appetite as the GBP/CHF pair tends to move right along with this pair when it comes to the idea of taking risks.

To the upside, if we were to break above the ¥151.50 level, that could open up a move for another 100 pips to the upside, as the ¥152.50 level has been an area of interest. As long as that is going to be the case, I think there would be a lot of resistance there as well. It certainly looks as if this market is trying to break down, but I am not quite ready to start selling, I would like to see a fresh low before I put money to risk.

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GBP/JPY Price Forecast – British Pound Bounces in Major Risk on Move

The British pound has rallied quite significantly during the trading session on Monday as it seems to be more of a “risk on move” around the markets. Because of this, I think that we may have a little further to go but at the end of the day the market still had been falling apart, and with that being the case I think it is very likely that we will see sellers sooner or later. At this point, I think it is much easier to wait for signs of exhaustion, but you could make a serious argument for a bit of a “hard floor” near the ¥150 level.

GBP/JPY Video 24.08.21

The size of the candlestick is rather important, but at this point it looks like the ¥152.50 level above could be an area that the market goes looking towards, but we have seen a lot of selling from that area. Furthermore, we have the issue with a lot of concern around the world when it comes to the reopening trade, and that of course will have a lot to do with what the overall markets do, including this one which of course is very sensitive to risk appetite.

If we do break above the most recent high, then we could go looking towards the ¥155 level. On the other hand, if we were to turn on a breakdown below the lows of the trading session on Monday, then it is likely that we will finally get that breakdown below the massive support that has kept this market somewhat supported. At that point, I would anticipate that the market goes looking towards the ¥145 level, possibly even the ¥140 level.

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GBP/JPY Weekly Price Forecast – British Pound Testing Major Support

The British pound has broken down rather significantly during the course of the trading week to test the ¥150 level. This of course is a large, round, psychologically significant figure that a lot of people will be paying attention to, and therefore the fact that we are starting to find just a little bit of support should not be a huge surprise. However, if we take out the massive hammer from roughly 5 weeks ago, that could open up massive selling in this market, perhaps sending the market racing towards the ¥145 level rather quickly. That being said, the ¥145 level is simply a large, round, psychologically significant figure, and not necessarily anything that is overly important.

GBP/JPY Video 23.08.21

This pair of course is going to be highly sensitive to risk appetite, so as that waxes and wanes, this market will move right along with it. That being said, if we do break down below the hammer from five weeks ago, it is likely that we could see a sudden move, so keep that in mind. As far as buying is concerned, we need to at the very least take out the top of the weekly candlestick we just printed, and even then, I would be a bit cautious as I think the ¥152.50 level has offered quite a bit of resistance in the past.

All things been equal, this is a market that looks very threatened, and you could even make a bit of an argument on the daily chart that we are in the process of forming a massive head and shoulders. Because of this, you definitely need to keep your eyes open on risk appetite in other markets to give you a bit of a “heads up” as to what could happen here.

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GBP/JPY Price Forecast – British Pound Continues to Grind Lower

The British pound has fallen a bit during the course of the trading session on Friday, to dig into the hammer that had initially because the market to bounce. That being said, it certainly looks as if we are ready to go much lower, and therefore I think what we are going to see is a downward move towards the bottom of the hammer from several weeks ago, and then an opening towards the ¥147.50 level. That being said, I do not think that the market stops there, I think that the market is likely to go much further to the downside, with the ¥145 level being targeted, and then eventually the ¥140 level. This obviously suggests that there would be a huge “risk off” type of situation.

GBP/JPY Video 23.08.21

Ultimately, we are starting to see a lot of trouble when it comes to financial markets, and therefore the Japanese yen will continue to attract a certain amount of attention. Looking at this chart, it certainly looks as if the bottom is about to fall out, which means we could see yet another acceleration. We are looking at “risk off” attitude around the world, and as long as that is going to be the case the Japanese yen will attract a certain amount of attention anyway.

This pair does tend to be very volatile and sudden and its moves, so do not be surprised if it certainly takes off to the downside. As far as the upside is concerned, we would need to take out the ¥151.50 level, in order to take out the negative candlestick from the Thursday session in order to even remotely begin to think about the upside.

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GBP/JPY Price Forecast – British Pound Plunges Into ¥150 Level

The British pound has fallen hard during the trading session on Thursday to reach down towards the ¥150 level. This is an area that would of course attract a lot of attention, as it is a large, round, psychologically significant figure, and an area where we have seen quite a bit of strength previously. We had formed a hammer just below this level from several weeks ago, and therefore it is likely that we would see plenty of support in this region. In fact, we have already started to bounce just a bit, so it makes quite a bit of sense that we would see a bit of a fight.

GBP/JPY Video 20.08.21

That being said, it certainly looks as if we are slumping along, and it looks like we will continue to see more downward pressure over the longer term. After all, the market is very sensitive to risk appetite. The Japanese yen is of course considered to be a major safety currency, so if we get more fear jumping into the market, that should send this market much lower. If we break down below the hammer from several weeks ago, the market is likely to go looking towards the ¥145 level, possibly as low as the ¥140 level, although that obviously would be a longer-term call more than anything else.

As far as buying is concerned, we would need to take out the last couple of candlesticks in order to make a short-term trade towards the ¥152.50 level. That is an area that I think will show a certain amount of resistance, as we have sold off from there quite recently.

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GBP/JPY Price Forecast – British Pound Bounces From Major Support

The British pound has rallied a bit during the trading session on Wednesday as the ¥150 level has offered support again. At the time of writing, the market is hanging about the ¥151 level, it looks as if it is going to bounce a bit from here. That being said, there is still a significant amount of resistance just above, especially at the ¥152.50 level. Any sign of exhaustion between here and there should be a nice selling opportunity, and therefore I will take advantage of that.

GBP/JPY Video 19.08.21

A breakdown below the ¥150 level would open up an attempt to break down below the hammer that sits just underneath, which would be the gateway for a massive drop. At that point, I would anticipate that we will probably go looking towards the ¥145 level, perhaps even down to the ¥140 level in what would have to be seen as a major “risk off move.” Remember that this is a market that continues to see outside forces come into the picture, as the risk appetite around the world continues to be very fluid situation.

The Japanese yen is considered to be a “safety currency” in general, all things being considered. Because of this, the market then would go looking towards lower pricing if we continue to see a lot of risk aversion. Quite frankly, this is a market that I think continues to see a lot of external influence causing huge issues. Ultimately, I do not have any interest in buying until we break solidly above ¥152.50, something that is not going to happen in the next day or two.

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

GBP/JPY Price Forecast – British Pound Continues to Drift Towards ¥150

The British pound fell during the trading session on Friday to break down below the ¥151 level and threaten the idea of reaching down towards the ¥150 level underneath. The ¥150 level of course would be a large, round, psychologically significant figure, especially supported by the massive hammer that had sent the market back to the upside. Ultimately, if the market was to go below there, then it is likely that the market will continue to drip much lower, perhaps reaching towards the ¥145 level, possibly even as low as the ¥140 level underneath there. After all, the market has been “slumping” for a while, and now that we are starting to see more of a risk off type of move, I think we could see this market accelerates to the downside if we break through that hammer.

GBP/JPY Video 18.08.21

To the upside, we could get a bit of a bounce, but it looks like the ¥152.50 level will continue to offer resistance above, so I do not necessarily think we get above there without some type of major turnaround. This would have to be a significant move that we would see across-the-board, not just here. We would need to see stock markets recover from the selloff that we had seen early in the day. Furthermore, you have to keep in mind that New Zealand has just locked itself back down due to a single case, and of course China continues to lock itself down as well. With that being the case, it looks like economic activity could be slowing down, and as markets are a forward-looking, they are starting to try to price the same.

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

GBP/JPY Price Forecast – British Pound Drifts Lower Against Yen

The British pound has drifted a bit lower during the course of the trading session on Monday, reaching down towards the ¥150.50 level. That is an area that has been supportive multiple times, and quite frankly if we can break down below the lows of the trading session on Monday, it is likely that we will continue to fall towards the ¥150 level. It should be noted that we have turned around to show signs of life and stability in the middle of the day, but quite frankly this is a market that I think is most certainly going to move right along the lines with risk appetite, as the Japanese yen is considered to be a “safety currency.”

GBP/JPY Video 17.08.21

One thing that is worth noting is that we recently had a nice bounce from the ¥150 level but have essentially gone sideways more than anything else over the last couple of weeks, in a bid to stabilize more than anything else. I suspect that we are either going to continue this short-term range bound trading or break back down. However, if we were to break above the ¥153.50 level, that could open up the possibility towards the ¥155 level. In general, this is a market that I think will continue to be very noisy, but the consolidation argument can be made simply because it is August, and it does end up being a relatively quiet month most of the time. With this, it is likely that we will continue to see choppy behavior more than anything else, and therefore position sizing will be crucial.

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

GBP/JPY Weekly Price Forecast – British Pound Continues to Grind Away

In the quiet trading that we have seen in the heat of the summer, quite frankly there has not been much to get excited about. A perfect example of this is the GBP/JPY pair, which has simply done very little. If this very volatile market is quiet, then you can assume that most of the other markets are doing the same thing. In general, this is a market that I think continues to see a lot of noisy behavior, but quite frankly whether or not we get some type of impulsive move could be an entirely different question.

GBP/JPY Video 16.08.21

We have been in an uptrend for quite some time, but the market will need some type of catalyst in order to get a bigger move. After all, we had seen the market shoot straight up in the air, and now a little bit of choppiness would make a certain amount of sense. However, if we were to break down below the hammer from four weeks ago, then it opens up a huge move to the downside, to at least the ¥145 level, possibly even down to the ¥140 level. That would be a very negative sign when it comes to risk appetite, and I suspect that you would see it show up in multiple markets, not just this one.

On the other hand, if we were to break above the ¥155 level, then it is very likely that we break out and continue to go much higher, completing the initial push to the upside in a “buy-and-hold” type of marketplace. This would also be seen bullish for multiple other marketplaces around the world.

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