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.

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