GBP/JPY Price Forecast – British Pound Continues to Struggle with ¥155

The British pound has rallied rather significantly during the course of the trading session on Tuesday as we continue to press the ¥155 level. That being said, the market has pulled back a bit from there and it certainly looks as if we would probably have the possibility of an attempt to break higher. Nonetheless, I do think that this is a market that given enough time will find reasons to try to break out above there. As we have such significant momentum from the longer-term standpoint. If we can do that, then I think the market has much further to go, perhaps the ¥157.50 level, followed by the ¥160 level.

GBP/JPY Video 26.05.21

Underneath, I believe that the ¥152.50 level is going to offer significant support in what has been a very strong uptrend to begin with. With that in mind, I have no interest whatsoever in trying to short this market, and I look at pullbacks as potential buying opportunities. With this being the case, if we get a bit of a dip, I look at it as a potential buying opportunity more than anything else.

The candlestick for the session was a little discouraging, but at the end of the day I do not think it makes a lot of sense to be overly concerned about it when you look at the totality of the way the markets been going. This is a risk on/risk off type of situation, so if market starts to “feel better”, this is a market that should do fairly well.

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

Indices Continue the Rise From the Last Week

 

Indices start this week on the front foot. The global bounce from the end of the last week seems secure.

Gold waiting for a breakout inside of the pennant formation.

Brent Oil continuing the bounce from a crucial horizontal support on the 65 USD/oz.

The EURUSD pair cannot decide which direction it is heading, having strong bullish and bearish days, one after another.

The AUDCHF pair is testing 38,2% Fibonacci. First buyers are there!

The NZDCAD pair is coming back above the lower line of the descending triangle pattern. That is potentially a start of a false breakout pattern and a legitimate buy signal.

The GBPJPY pair tests the neckline of a nice Head and Shoulders formation.

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

GBP/JPY Price Forecast – British Pound Pulling Back From Major Resistance Barrier

The British pound pulled back just a bit during the course of the trading session on Monday as the risk appetite around the world continues to wane just a bit. The ¥155 level of course is a large, round, psychologically significant figure that a lot of people would be paying close attention to, so with that being the case it is not a huge surprise to see that we have pulled back. However, if we can break above the ¥155 level on a daily close this would be a very bullish sign. At that point, I would anticipate the market going towards the ¥157.50 level, followed by the ¥160 level.

GBP/JPY Video 25.05.21

However, in the short term it looks as if we are likely to pull back in to go looking towards the ¥153 level, maybe even the ¥152.50 level. At that point, we would be testing the bottom of a major extension higher from the impulsive candlestick that we have seen. Furthermore, the gap that sits there could come into play as well. All things being equal, it is likely that we would see buyers coming back in. Regardless, I have no interest whatsoever in trying to short this market, due to the fact that the market is obviously very bullish, so with that being the case it is very difficult to imagine a scenario where I would be trying to short this market anytime soon. Looking at this chart, it is obvious to me that the market is likely to see a lot of choppy behavior, but I still think there are plenty of buyers underneath. All things been equal, I think eventually we do find enough momentum to break out.

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

GBP/JPY Weekly Price Forecast – British Pound Continues to Hammer Same Resistance Barrier

The British pound has gone back and forth during the course of the week, reaching towards the ¥155 level, an area that has been psychological resistance and therefore it is worth paying close attention to it. Ultimately though, if we can break above the ¥155 level it opens up the possibility of the British pound moving much higher. Unfortunately, we do not seem to have that momentum quite yet and when you look at the British pound against the US dollar, it is in a similar fight with the 1.42 handle. If we can break out over there, then it can break out over here. Until then, I think we are probably under threat of a potential pullback.

GBP/JPY Video 24.05.21

That pullback looks like a buying opportunity to me, and I certainly have no interest whatsoever in shorting this market. At this point, I am doing one of two things: I am either buying a breakout above the ¥155 level on the daily chart or buying a pullback to somewhere near the ¥153 level. I have no interest in shorting this market, as we are most obviously in a very massive uptrend and only fools will try to step in front of this runaway train.

This does not mean that you just buy it and hold it, but we need one of those two scenarios to appear in order to get long. Until then, we simply wait for an opportunity to buy this pair as it should continue to find plenty of strength. It is not until we break down below the ¥148 level that I would even entertain the idea of shorting this pair. That does not look very likely to happen.

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

GBP/JPY Price Forecast – British Pound Reaching Towards ¥150

The British pound has gone back and forth during the course of the trading session on Friday as we continue to see a lot of noise in general. The ¥155 level above is significant resistance as we have seen multiple times, and it looks like we are trying to build up enough momentum to finally go looking towards higher levels above there, but if we were to break above the ¥150 level, the market could very well take off to the upside. At that point, I would anticipate a move to the ¥160 level.

GBP/JPY Video 24.05.21

Underneath, I believe that the ¥153.50 level continues to be massive support, which is an area that has held over the last couple of weeks. We have seen a massive move above that level to show signs of strength, and therefore I think what we are seeing here is an opportunity to back up and build up momentum to the upside. Ultimately, this is a market that I think has been in an uptrend for quite some time and is simply working off some of the recent froth that we have seen. It is also worth paying attention to the GBP/USD pair, as it will give us an idea as to the overall strength of the GBP, which is currently struggling with the 1.42 handle, so if we break out over there, we will almost certainly break out over here. Nonetheless, this pair does tend to move with risk appetite so keep that in mind, and therefore pay attention to stock indices and how they are behaving globally, because it can give you an idea as to where we will go.

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

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

The British pound has pulled back initially to kick off the trading session on Thursday but has turned around to show signs of resiliency again. Quite frankly, I think the market is trying to build up enough momentum to finally take out the ¥155 level, and the fact that we continue to turn around at roughly ¥153.50 suggests that there is real faith behind this move. After all, as assets continue to rise in value and risk appetite picks up, you essentially should see this pair rise as it is very risk sensitive.

GBP/JPY Video 21.05.21

Beyond that, you also have the United Kingdom opening up and it does make a certain amount of sense that this market would reflect that as well. If we can get above the ¥155 level, it more than likely opens up a move all the way to ¥160 and possibly even beyond. Pullbacks at this point time should continue to see support at the ¥153.50 level, and then underneath there at the ¥152 level. We are in a nice uptrend and I think that is what you need to pay the most attention to, so having said that I like the idea of buying the dips and adding if we finally get that breakout. At that point, I would anticipate a huge move to the upside. I have no interest in selling this pair anytime soon, because quite frankly we would have to break down below the ¥150 level to get negative, something that I just do not see happening in the current market conditions that we have.

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

GBP/JPY Price Forecast – British Pound Pulls Back From Big Figure

The British pound initially tried to rally during the course of the trading session on Wednesday as the ¥155 level came into the picture. That being said, the market is likely to continue to see the ¥155 level as a major ceiling. That being said, I do think that it is only a matter of time before we break above there and even though we have seen quite a bit of negativity during the session, we are still very much in an uptrend, so it is only a matter of time before the buyers return. I anticipate somewhere near the ¥153 level we could see traders come back into this market, but nonetheless what I am looking for is a daily candlestick that shows signs of support. After all, it is about buying “value” as it appears.

GBP/JPY Video 20.05.21

On the other hand, I do think that given enough time we might break above the ¥155 level and continue towards the ¥157.50 level, and then eventually the ¥160 level. This is a market that is going to be very sensitive to risk appetite in general, so I do think it is only a matter of time before we see this market move back and forth right along with stock indices and everything else. We simply need to see this market calmed down in general, and then the GBP/JPY level will start to increase right along with it. At this point, I am looking for signs of stability that can offer a buying opportunity, and ultimately take advantage of what has been such a strong trend.

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

GBP/JPY Price Forecast – British Pound Approaching Major Level

The British pound has rallied a bit against the Japanese yen and other currencies during the trading session on Tuesday as we continue to see sterling strengthen in general. With this in mind, I do believe that it is only a matter of time before we continue to go higher, perhaps breaking towards the ¥155 level and above. Once we clear that level, then it is likely that we see this market go looking towards the ¥160 level, which of course is the next large, round, psychologically significant figure. With that in mind, I think that the market is likely to continue to see upward pressure, but we may get the occasional short-term pullback.

GBP/JPY Video 19.05.21

Judging by the way the British pound is acting overall, I fully anticipate that we will eventually see a move higher, so I look it dips as value. The ¥153.50 level should be support, as it has recently been supportive and should continue to see plenty of interest. At this point, it is obvious that the Japanese yen is on its back foot, as we are seeing in multiple currencies beat it up. The market is likely to see the occasional dip, but quite frankly this looks like a market that is trying to build up the necessary momentum to shoot higher, perhaps causing a major breakout in the British pound against all currencies. After all, the United Kingdom is coming out of the pandemic and is starting to show signs of strength overall. As it reopens, it is very likely that we would see all things British continue to strengthen.

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

GBP/JPY Price Forecast – British Pound Sitting at Highs Against Yen

The British pound has gone back and forth during the course of the trading session on Monday as we continue to hang about the ¥154 level. This is a local high, and it is worth paying attention to because we are simply consolidating in this area after a nice move to the upside and looking to build up enough momentum to perhaps take out the psychologically significant ¥155 level.

GBP/JPY Video 18.05.21

Looking at this chart, dips should be buying opportunities as we are clearly in an uptrend, and if the British pound can break above the 1.42 level against the US dollar, that will only turbocharge this move as it would add more strength to Sterling to begin with. As far as selling is concerned, I have no interest in doing anything like that, because we are clearly in an uptrend and therefore, I think it is only a matter of time before value hunters come back into the picture. It is also worth noting that the ¥152 level is an area where we gapped at the beginning of last week, so therefore it should continue to offer plenty of support.

What I like the most about this currency pair is that even when we are more “risk off”, this pair simply sit still instead of selling off like it normally would. That tells me that people are looking to go long risk assets, including Sterling versus the Japanese yen. The fact that we are holding so firmly tells me that there is a lot of belief to the upside and therefore I think it is only a matter of time before we go much higher. Once we do, this pair could go to ¥160.

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

GBP/JPY Higher Lows in Progress as the Price is Slightly Bullish

The GBP/JPY has formed a bullish pattern configuration and we might expect a breakout above the previous high.

The POC zone 153.60-70 might spike the price up as it is a POC zone. We can also post a trend line which is adding to the confluence. If we see a bounce that the next target is 154.40 followed by 154.80. If the price breaks 153.40 to the downside then bears will be stronger and the next target is 152.76 followed by 152.34.

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 – British Pound Has Break Out Week

The British pound has rallied significantly during the course of the week, showing strength yet again. The breaking of the ¥153 level is a very strong sign, showing that we could perhaps go looking towards the ¥155 level. The market gapped higher to kick off the week, and then just shot straight up in the air to break through what had been resistance. By doing so, it suggests that we are going to go looking towards the ¥155 level.

GBP/JPY Video 17.05.21

Underneath, the ¥150 level is a bit of a “floor the market”, and I do think will be massive support. Furthermore, the 50 week EMA has just crossed above the 200 week EMA, suggesting that we are going to see a much longer term move. I think that is very likely, and you can take a look at the weekly chart and see that we have in fact just broken out of something akin to a bullish flag. This could lead to a multi handle move over the longer term, so I think investors are starting to stand up and take notice yet again. Obviously, they knew that the market had been bullish previously, and now it looks like we are trying to continue that overall momentum.

If we do pull back, I believe that it is only a matter of time before we would see support underneath, most specifically the ¥150 level. However, that gap from the open on Monday could also be massive support, and therefore I would not be surprised at all to see that hold up. Regardless, I have no interest in shorting this market anytime soon.

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 Against Yen

The British pound initially tried to rally during the trading session on Friday but gave back early gains as we continue to see a lot of noise near the ¥153.50 level. The market is almost certainly going to continue going higher given enough time, but we may have a little bit of choppy behavior in this general vicinity. Take a look at the Monday candlestick, it was an extremely explosive one and also one that broke above resistance, so I do think we have further to go. This does not mean that it is necessarily going to be easy, but I think eventually we go looking towards the ¥155 level which is my medium-term target.

GBP/JPY Video 17.05.21

The Japanese yen has been on the back foot against a multitude of currencies, not just the British pound. With that in mind, I like the idea of buying dips on signs of support and will continue to do so. I have no interest in shorting this pair and recognize that all the way down to the ¥150 level there are multiple short-term spots that could offer significant support. With this being the case, I think what we are looking at is a scenario where you buy the dip on lower time frames and try to build a larger position for a bigger move. It is not until we break down below the ¥150 level that I even remotely consider shorting this market, so at this point it is simply a matter of waiting for something like a hammer on one hour chart to get involved.

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

Major Indices Bounce From Crucial Supports, Not All of Them Though

 

SP500 is doing what it always does – V shape reversal and a rapid bounce from the major support (in this case, long-term up trendline).

Dow Jones is in a similar situation; surge after contact with an uptrend line sorts out the situation.

Nasdaq on the other hand is having some issues, here the price broke the uptrend line, so the buy signal is no longer here.

DAX with a sweet-looking hammer on the daily chart yesterday. We’re still inside of the wedge, with a bright outlook for tomorrow

Nikkei with a similar situation to Nasdaq – the major uptrend line got broken. What’s more, we broke the lower line of the triangle and the support on the 28300, which is negative

Brent Oil bounces from the lower line of the channel up formation

The USDCAD is on a key long-term horizontal support. A bounce here wouldn’t be a surprise

The AUDCHF breaks the lower line of the symmetric triangle pattern, that’s bearish

The GBPJPY currently creates the right shoulder of the H&S pattern. Here a breakout of the neckline would a mid-term sell signal

GBP/JPY Price Forecast – British Pound Continues to Work Its Way Higher

The British pound has been a bit choppy during the trading session on Thursday as we have recently broken above the ¥153.50 level. At this point in time, the market is likely to go higher, perhaps reaching towards the ¥155 level. That is an area that would attract a certain amount of attention as it is a large, round, psychologically significant figure and therefore will have people taking profit as a lot of these systems get involved and work on big figures.

GBP/JPY Video 14.05.21

All things being equal, the market is likely to continue looking bullish overall, but the occasional pullback might be necessary as we have a lot of volatility. We have most certainly broken out as of late, so I do think that it is only a matter of time before buyers would come back in and pick this market up. I have no interest in shorting, and I do recognize that the 50 day EMA crossing the ¥150 level probably makes that yet again another floor the market. Consider that there is a lot of volatility and concern out there, as this market is very sensitive to risk appetite and therefore it could be very noisy. Nonetheless, the longer-term track and momentum in this market certainly looks to be to the upside.

If we broke down below the ¥150 level, then I might consider shorting for a move down to ¥145, but to be honest I would probably be much more interested in buying this pair at much lower levels near that ¥145 level then risking going against the longer-term trend. All things been equal all be looking for an opportunity to get long.

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

GBP/JPY Price Forecast – British Pound Continues to Strengthen

The British pound has rallied again during the course of the trading session on Wednesday as we continue to see the Japanese yen get hammered in general. The British pound has been one of the better performers over the last several weeks, so this does make a certain amount of sense that we would see this happen. Ultimately, I do think that this market continues to go much higher, perhaps reaching towards the ¥155 level once we finally make a little bit more of a breakout. The ¥155 level of course has a certain amount of psychological importance built into it, so I would anticipate a bit of a struggle in that general vicinity.

GBP/JPY Video 13.05.21

Looking out the set up, we had a very strong and impulsive candlestick followed by a neutral candlestick. When you break the top of that neutral candlestick, typically that means there is a certain amount of follow-through that will come down the road as traders look for continued gains and perhaps even more importantly, a continuation of the overall trend that has been so ensconced in this market for quite some time. With that being the case, I think that buying short-term dips should continue to work, as we almost certainly will go looking towards the crucial ¥155 level. Given enough time, I think will even break above there and go looking towards the ¥160 level, but that is probably a story for several months down the road. Underneath, I see the gap from the open on Monday as being rather supportive, so I think that is essentially your “floor in the market” currently.

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

GBP/JPY Price Forecast – British Pound Sitting at Highest

The British pound initially tried to rally during the trading session on Tuesday but gave back the gains early in the day as we continue to hang around the ¥153.50 level. This is an area that of course has been resistance previously, and now it looks like we are trying to build up a certain amount of momentum in order to take off. Given enough time, it is likely that the market will continue to go higher as we are in an uptrend, but we may get a short-term pullback in order to build up the necessary momentum.

GBP/JPY Video 12.05.21

Underneath, I see the ¥150 level as a potential support level, as it is a large, round, psychologically significant figure but it also features the 50 day EMA. Furthermore, one thing that we could take a look at is that there is a gap from the beginning of the Monday session that has not quite been filled, so I would anticipate that somewhere around the ¥152 level we should see support as well.

I do think that given enough time the buyers will return though, as the Japanese yen is on its back foot and it certainly looks as if we are starting to pick up a certain amount of momentum, and it is also worth noting that the risk appetite around the world will be a major influence on where we go next. Currently, it appears that there is plenty of risk-taking out there but having said that it makes me still bullish of this market and since we did make a fresh eye, I think it is only a matter of time before we go to the ¥155 level. It may take a while, but that still my target.

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

GBP/JPY Price Forecast – British Pound Breaks Highs

The British pound has skyrocketed during the trading session on Monday to break above the recent highs and clear the ¥153.50 level. This is a major breakout, and it should open up the possibility of a move towards the towards the ¥155 level in the short term. Longer-term, you could make an argument for a bit of a bullish flag, which opens up an even bigger move in theory.

GBP/JPY Video 11.05.21

Nonetheless, this is a market that looks like it has plenty of support near the ¥150 level, which of course is a large, round, psychologically significant figure, and an area where the 50 day EMA sits. All things being equal, this is a market that I think will continue to see buyers on dips, and I do think that it is only a matter of time before we not only reach towards the ¥155 level, but perhaps even higher than that. If we break that level, then it is likely to go towards the ¥160 level.

Keep in mind that this pair is highly sensitive to risk appetite, so keep an eye on various markets around the world. Nonetheless, it certainly looks as if we are ready to take off to the upside, so I think it is only a matter of time before we climb even higher. All things being equal this is a market that simply will not fall anytime soon, but if we did break down below the 50 day EMA, then it is possible that we can go looking towards the ¥145 level, where the 200 day EMA is starting to reach towards and certainly would attract a lot of attention.

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

GBP/JPY Weekly Price Forecast – British Pound Gives Up Early Gains for the Week

The British pound has rallied a bit during the course of the week to go looking towards the ¥152 level before pulling back. All things being equal, the market is likely to see the a lot of noisy behavior in this general vicinity, with the ¥150 level underneath offering significant support. We are in a relatively clearly defined consolidation area, which should not be a huge surprise considering how the market went straight up in the air previously. With that in mind, I think will continue to chop around in this general vicinity so longer-term traders will probably have very little to do in the short term.

GBP/JPY Video 10.05.21

If we were to break down below here, the ¥145 level would be an area of support, especially as the 200 day EMA on the daily timeframe comes into play there. All things been equal, the market probably does not go there, but if the market were to break above the ¥153.50 level, then the market is likely to see a move towards the ¥155 level. Looking at this volatility tells me that you are going to have to be very cautious, so I would be hesitant to throw a bunch of money into the market all in one shot, but if the traders out there decide to push this market finally, then I would be looking to get bigger. Looking at this chart, it is a bit of a bullish flag, although it still has some time to go before, we finally fill out what would look like a true in fully developed flag. As we head into the summer, it will probably be somewhat choppy from a natural point of view anyway.

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

GBP/JPY Price Forecast – British Pound Has Rough Day

The British pound shot higher in the early hours of the trading session on Friday, but then we pulled back from the ¥152.50 level. At this point in time, the market is likely to continue to see a lot of noise just above, and it is very likely that we continue to see a lot of choppy behavior. Quite frankly, this is a pair that is very highly levered to the risk appetite of traders around the world, which of course has been thrown into a bit of a tizzy as the jobs number in the United States was such a disaster.

GBP/JPY Video 10.05.21

Underneath, we have the ¥150 level as support, especially now that the 50 day EMA is sitting there as well. To the upside, if we can break above that ¥152.50 level then I think we could go looking towards the ¥153.50 level. I do believe that this is a market that continues to see a lot of choppiness but given enough time I do think that we need to make a bigger decision. Ultimately, this is a market that I do believe will eventually get moving but it appears that we have been working off quite a bit of froth from the initial shot higher.

If we were to break down below the 50 day EMA, then it is likely that we could go looking towards the ¥145 level. That is where the 200 day EMA comes into play, and of course defines the overall trend. With this being the case, I think it is only a matter of time before the buyers come back but currently, I think we are probably going to see a lot of choppy behavior.

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

GBP/JPY Price Forecast – British Pound Very Noisy

The British pound has initially pulled back a bit during the course of the trading session on Thursday but turned around to show signs of strength again as the Bank of England is suggesting that they will be tapering bond purchases, which is a form of monetary policy tightening. This follows the Bank of Canada, as we are starting to see central banks try to get ahead of the reopening trade.

GBP/JPY Video 07.05.21

The Japanese yen continues to get beaten up, and that of course will not be any different here. The ¥150 level underneath is rather significantly supported, not only due to the fact that we have seen a bit of a bounce from there, but we have also seen the 50 day EMA coming into the picture. With that being the case, I think it is only a matter of time before buyers will come back into this market if we reach down towards that area.

On the other hand, it looks much more likely that we are going to go looking towards the ¥153.50 level, and then possibly reaching towards the ¥155 level. This is a market that has been in a very bullish move over the last several months, and now we are simply grinding back and forth in order to try and pick up more momentum while working off froth. Eventually, I anticipate that the buyers will continue to look it dips as value in a market that has been obviously one way for quite some time. I anticipate that the Friday market might be a little bit quiet ahead of the jobs number but if we get a good number out of the United States, we may get more “risk on behavior”, sending this pair higher.

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