GBP/JPY Price Forecast – British Pound Continues to Trade and Same Range

The British pound has rallied ever so slightly against the Japanese yen during the trading session on Thursday, as we continue to see the same reaction worldwide to risk appetite, in the form of confusion to say the least. Because of this, it is likely that we will see a continuation of the overall choppy behavior that we have seen for some time. Because of this, I think that you have to continue to look at the ¥153 level as the top of a resistance barrier, and then the ¥150 level is significant support underneath. That support extends down to the ¥149 level, which is a major range of support.

GBP/JPY Video 08.10.21

As we are sitting essentially just in the middle of the overall range, it makes sense that you probably stay away from this trade unless of course you are willing to go back and forth between the two major areas on short-term charts. Range bound traders will probably like this chart, but when I look at the longer-term version of this chart, it suggests that perhaps we are trying to form a bit of a topping pattern.

When you look at this chart, it is easy to see just how erratic the markets have been as the pair tends to rise in good times but tends to fall when there is more of a “risk off attitude” around the world. That being said, the markets seem to be locked in some type of indecisive behavior, so I think all of this makes quite a bit of sense. If we do break out of the range, then it is simply a matter of following the market either higher or lower.

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

The British pound initially tried to rally during the trading session on Wednesday but gave back the gains near ¥152.50, an area that has been important several times as of late. The market pulling back the way it has should not be a huge surprise, because quite frankly the ¥152.50 level has offered a top to a consolidation area that we have been in for a while. Underneath, we have the ¥150 level that extends down to the ¥149 level.

GBP/JPY Video 07.10.21

If we were to break down below the ¥149 level, then the market is likely to go looking towards the ¥145 level, possibly even the ¥140 level after that. At this point in time, the market continues to look very noisy, but that should not be a huge surprise due to the fact that there is a high correlation between risk appetite and this currency pair. After all, the market will continue to see money jumping towards the Japanese yen in any type of “risk off” situation.

At this point, it looks like we are forming a huge topping pattern, so that is something worth following, as if we break down below the ¥149 level, I suspect it will be a bit of a “trapdoor opening” for a move much lower. In fact, I believe that people will be flooding into the Japanese yen at that point in time. There are plenty of reasons out there to think that there would be a sudden “risk off move”, so this would not surprise me and therefore it is essentially what I am looking for this market to do over the longer term. That being said, if we were to break above the ¥153 level, then the market is likely to go looking towards the ¥155 level.

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

The British pound has rallied a bit during the course of the trading session on Tuesday as we continue to see this market going back and forth during the trading session. The market has seen a lot of resistance at the ¥153 level, with the support level underneath being at the ¥150 level and extending down to the ¥149 level. At this juncture, I think we are simply bouncing around and trying to find a reason to break out or break down.

GBP/JPY Video 06.10.21

The market has been bouncing around in this area for a while, so it does make quite a bit of sense that we would see an attempt to get to the top of the range. All things been equal, this is a market that I think continues to see a lot of noisy behavior, but ultimately it certainly looks as if we are trying to break down a bit, and therefore I think that the market will eventually make a serious attempt to break down below the ¥140 level. In fact, when you look at the longer-term chart, you can see that we have formed a bit of a topping pattern.

On the other hand, if we were to break above the ¥153 level, then the market is likely to test the ¥155 level, an area where we had seen a lot of bearish pressure previously. At this point in time, that seems very unlikely, but it is a possibility if we suddenly get a huge “risk on move” in the markets overall. In general, this market continues to be a great barometer for risk appetite.

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Silver With a Major Reversal

Indices are moving rather sideways and that can actually be the case for the next weeks. The sentiment is not good enough to drag the prices to new all-time highs but on the other hand, there is so much money on the market that it will be hard to see any bigger drop. That being said, I think that the sideways trend will be option nr1 for the market in the nearest future.

The EURUSD dropped lower after breaking major supports.

The GBPUSD on the other hand, is climbing higher and currently testing a crucial resistance.

The USDCAD bounced off a crucial horizontal resistance and is still going towards a long-term sell signal.

The GBPJPY is moving sideways and is getting closer to a major breakout, which should not be missed.

Silver is climbing back above the crucial support, which is based on a false breakout, giving us a proper buy signal.

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

Gold, on the other hand, is still in no man’s land but pay attention how well it respects the closest Fibonacci levels, real technical beauty!

GBP/JPY Price Forecast – British Pound Continues Consolidation Against Yen

The British pound has rallied a bit during the course of the trading session on Monday to show signs of life again. The ¥151 level has been targeted, and although we have sliced through it before it does still offer a little bit of hesitancy. Above here, we then have the ¥152.50 level that has been massive resistance multiple times, so I think we are simply bouncing around in order to try to figure out where to go next. If and when we finally break out or break down out of this range, then I think we have a real trade on our hands.

GBP/JPY Video 05.10.21

The ¥149 level underneath being broken to the downside would be extraordinarily negative, opening up the possibility of a move down to at least the ¥145 level. This would be a massive “risk off” trade, probably coincide with a lot of other negativity in the markets. At this point, I suspect that this is a market that will continue to be choppy, and range bound, at least until we get some type of clarity with risk appetite. If we break above the ¥153 level, then I suspect we go looking towards the ¥155 level, an area that has been resistance more than once.

All things been equal, this is a market that I think continues to be very noisy, and therefore you need to be cautious with your position size. If you are a range bound trader, this might be a decent set up for you, perhaps using something like a stochastic oscillator based system to take advantage of it.

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

GBP/JPY Weekly Price Forecast – British Pound Continues to Show Signs of Confusion

The British pound has been all over the place against the Japanese yen as of late, as we continue to see a lot of noisy trading. The British pound against the Japanese yen is a very sensitive to risk appetite, so that something that you need to pay close attention to. What we do have here is a very clear support level near the ¥149 level, so if we breakdown through there, then it is likely that we fall apart and go much lower, perhaps reaching down to the ¥145 level, possibly even the ¥140 level. As things stand right now, I think that is very possible.

GBP/JPY Video 04.10.21

However, that has not kicked off yet, so quite frankly you are wasting your time trying to jump in the market right now. On the other hand, if we were to turn around a break above the ¥153 level, then we have a real shot at trying to take out the ¥155 level. What you do not see on the weekly chart as clearly as you do on the daily chart is the fact that we have formed a complex head and shoulders pattern, which can lead to lower pricing.

The shape of the candle of course is less than enthusiastic and is relatively neutral with just a slightly negative bias. That is a good representation of what is going on under the hood of the market, so keep in mind that it is very worthy of paying close attention to, but I would be cautious about going “all in” until we get clarity.

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GBP/JPY Price Forecast – British Pound Trying to Recapture Momentum

The British pound has initially plunged against the Japanese yen during the trading session on Friday, but then turned around to show signs of life to recapture the ¥150 level. This is a market that has been very noisy as of late, and of course is driven almost entirely by risk appetite. In other words, this is a great barometer as to how the world is “feeling” about risk at the moment, so if you are not trading this market, at the very least is not a bad idea to keep an eye on it.

GBP/JPY Video 04.10.21

If the market were to break down below the ¥149 level, then it is possible that the market would fall apart and go much lower, perhaps looking towards the ¥145 level. To the upside, if we were to turn around and find signs of life, then it is not until we break above the ¥153 level that I would be convinced. All things been equal, I think the best thing that you can look for in this market is a lot of choppy behavior, as there is so much uncertainty out there.

Nonetheless, that uncertainty typically will cause fear, which typically will send this market lower. That being said, the market is likely to continue to see extreme amounts of volatility, so you should be cautious about your position size, nonetheless. After all, in this type of volatility you can lose money rather rapidly and drastically. With this, you need to be very cautious, but if we do finally get that break down below the ¥149 level, the market really starts to pick up and I would get big with my position.

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GBP/JPY Price Forecast – British Pound Continues Consolidation

The British pound has gone back and forth during the last several days, and on Thursday we rallied a bit from the ¥150 level to show more of the same. At this point in time, the most important thing to pay attention to is that the area between the ¥149 and the ¥150 level continues to be a major support level and is heavily defended. However, each successive high continues to get lower so it does make a certain amount of sense that we may see an attempt to break down below the ¥149 level given enough time.

GBP/JPY Video 01.10.21

If we do, then it will kick off a major move to the downside that could send this market all the way down towards the ¥145 level, possibly even the ¥140 level after that. That would obviously be a major “risk off” move that could kick off a lot of selling in general. That being said, we would probably see a lot of selling off when it comes to risk appetite markets overall, so therefore I think it would be a situation where you would see a bit of a bloodbath across-the-board.

On the other hand, if we were to turn around and take out the ¥153 level, then it is likely that we would see this market go looking towards the ¥155 level in a major “risk on” type of move. Looking at this chart, I think we are building up the inertia for a bigger move, but we do not quite have the catalyst to kick things off quite yet.

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USD Gains Accelerate

The SP500 created a small flag, which is probably a stop before an attack on the neckline of the Head and Shoulders formation.

The Nasdaq escaped from the wedge to the downside. The Head and Shoulders formation is in play here too.

The EURUSD broke a major horizontal support and is aiming lower.

The GBPUSD is in pretty much the same situation.

The USDJPY is climbing higher and it all started with a bullish breakout from the symmetric triangle pattern.

The CADJPY created a small pennant in the mid-term. A breakout will show us the direction.

The GBPJPY is also waiting for a breakout.

The USDMXN already had one. This time, to the upside. Sentiment is definitely positive.

We end with Silver, which also broken an important level, but in this case, it’s a crucial horizontal support. The next few days and weeks can be tough.

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

GBP/JPY Price Forecast – British Pound Falls Into Support

The British pound has fallen a bit during the trading session again on Wednesday as we go careening into the ¥150 level. This is an area that begins significant support extending down to the ¥149 level. As long as we can stay above ¥149, there still some hope for this pair but if we break down below that level it is very likely that we unwind for much deeper of a correction. At that point, I would anticipate that the market could go looking towards the ¥145 level, possibly even the ¥140 level over the longer term.

GBP/JPY Video 30.09.21

To the upside, if we can clear the ¥153 level then it is likely that we will continue to go to the ¥155 level, although I do not find that it is likely at this point in time. There is a lot of “risk off” type of trading out there right now, which certainly works against the value of this pair. The Japanese yen is considered to be a safety currency, so a lot of people will be paying close attention to it and whether or not fear starts to creep back into the market.

At this point, it looks like we are trying to hold the line as far as support is concerned, but one would have to think that in the present scenario that we find ourselves in that it is probably only a matter of time before something happens. Because of this, I will be very cautious about my position size, but I also recognize that the market breaking below the ¥149 level would be a time to get very aggressive.

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

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

The British pound initially tried to rally during the trading session on Tuesday but gave back the gains as we got close to the ¥152.50 level. This is an area that has been important and difficult for quite some time. At this point, the market looks as if it is trying to build up momentum to the downside, possibly kicking off a major low. If you see this market break down below the ¥149 level, then it is likely that we will fall quite drastically. At this point, the market then probably drops down to the ¥145 level, maybe ¥140.

GBP/JPY Video 29.09.21

Rallies at this point in time still continue to see sellers above, and the fact that the level has been tested multiple times and failed, that suggests that we are going to continue to see a lot of selling pressure every time we rally. All things been equal, this is a market that is going to move right along with risk appetite, so keep that in mind as well. Because of this, expect a lot of noisy behavior but clearly you should be looking for opportunities to short this market every time it shows signs of weakness.

On the other hand, if we were to break above the ¥153 level, then it is likely that we could go looking towards the ¥155 level above. The ¥155 level has been like a brick wall, so if we do take off above there it would kick off a major “buy-and-hold” type of situation. The market is of course highly sensitive to risk appetite, so keep that in mind as well.

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

GBP/JPY Price Forecast – British Pound Reaching Towards Resistance Again

The British pound has rallied during the course of the trading session on Monday to reach towards the ¥152.50 level, an area that has been massive resistance in the past. Because of this, I think it will be interesting to see how this plays out over the next couple of days, but we are certainly in an area where we have seen a lot of selling pressure. If we break down below the bottom of the trading session on Monday, then it is likely that we will continue to go much lower, perhaps reaching down towards the ¥150 level. Underneath there, then we have an obvious support region that extends down to the ¥149 level.

GBP/JPY Video 28.09.21

If we can somehow break through all of that, that could open up the “trapdoor” in this market, making it fall like a stone. On the other hand, if we were to turn around and break above the ¥153 level, then I think it allows the market to go looking towards the ¥155 level. Looking at this chart, which would take a significant amount of effort, but it is very possible that it could happen.

The Japanese yen is being sold off against the greenback, which of course is its measure of relative strength, so if there is one place that we could see a currency beat up on the yen, it is probably here as the British pound has been rather resilient. With all of this being said, I believe the next couple of days are going to be choppy to say the least, but they may be pivotal as to where we go for the next couple of weeks. With that being the case, I am more than willing to sit and watch.

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

EUR/USD, Cable and Silver Bounce From Crucial Horizontal Supports

SP500 opens higher but Asian and European sessions bring only sour disappointment.

Dax is doing slightly better but we’re still below a major mid-term down trendline.

Nasdaq is breaking the lower line of the wedge, which is actually pretty negative.

GBPUSD is defending crucial long-term horizontal support.

USDJPY continues the upswing after the price broke the upper line of the symmetric triangle pattern.

AUDCHF is trying to create the right shoulder of the iH&S formation.

CADJPY is with a proper buy signal, after the price breaks the neckline and the mid-term down trendline.

GBPJPY is very close to a buy signal as the price is currently breaking the dynamic resistance as we speak.

USDMXN is very close to a major trading signal as we are almost at the end of the symmetric triangle pattern.

Silver is trying to create a double bottom formation on a crucial horizontal support.

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

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.

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

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.

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

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.

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

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.

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

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.