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.

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.

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

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.

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

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.

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

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.

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

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?

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

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.

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