GBP/JPY Price Forecast – British Pound Continues to Fight

The British pound has gone back and forth during the course of the trading session on Wednesday, trying to stabilize after the significant selloff that we had seen during the previous session. The market is still very much in a bullish trend, but one would think that the massive selloff that we had seen the previous day is probably not a “one-off event”, because they typically are not.

GBP/JPY Video 08.04.21

Looking at this chart, the ¥150 level underneath makes quite a bit of sense as support, so if we do continue to drift lower, I will be looking for a buying opportunity in that general vicinity. That of course would be an area that a lot of psychology will come into play, and of course the fact that the 50 day EMA is trying to get to that area probably helps as well. When you look at the chart, you can see clearly that the 50 day EMA has been influential for some time.

To the upside, the ¥153.50 level is an area of resistance, but there is nothing special about that area from a longer-term perspective. Because of this, I do think that the market will be able to slice through there without too many major issues, although that does not mean that we sliced through it immediately. At this juncture, I think that will be thought of more or less as a target than anything else, so I believe the buyers will be gunning for that level. Longer-term, I think that they would probably be looking towards the ¥155 level as the British pound has been so strong.

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