GBP/JPY Weekly Price Forecast – British Pound Continues to Hover at ¥150

The british pound has rallied significantly during the course of the trading week, but then failed to hang on to gains above the ¥150 level with any type of conviction. This suggests that we are more than likely going to struggle heading into the end of the year, at least as far as to directionality is concerned. That being said, if we were to suddenly take off below the ¥149 level to the downside, we could see a major selloff at that point, opening up the possibility of a move down to the ¥145 level, in what would be a major “risk off move” around the world.

GBP/JPY Video 13.12.21

On the other hand, if we can break above the top of the candlestick for the week, then I think it is likely we go looking towards the ¥152.50 level. Breaking above that level then opens up a huge “risk on move” where we could go looking towards the ¥155 level. This is a market that has been very noisy as of late, and it is looking as if the massive increase in volatility does threaten the market, but all things being equal we need to get down below that ¥149 level to get a bigger move.

A lack of liquidity heading into the end of the year is very likely to be a major threat to stability, especially as this market does tend to jump around quite drastically based upon a motion more than anything else. At this juncture, this is a market that I think is building up for some type of move, but that may have to wait until next year.

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