Yahoo Finance GBP/JPY Price Forecast – British Pound Gets Hammered
The British pound has initially tried to rally during the trading session on Friday, but then turned around to break down significantly. That being said, it looks very much like a market that is trying to figure out whether or not it needs to test that small gap underneath at the ¥152 level. The market certainly looks as if it is in trouble, but when you look at the longer-term trend, we are nowhere near threatening it. It is because of this that I think this market move is to simply wait for stabilization or a major breakdown. We have not seen that major breakdown yet, although we have seen the breakdown of the initial support.
GBP/JPY Video 21.06.21
This pair is highly correlated to risk appetite, so unfortunately this will be thrown around by the Federal Reserve speak and the latest headline about inflation. Ultimately, this is a market that I think continues to see volatility and therefore it is very likely that we will have to be very cautious trading this pair, perhaps trading smaller positions more than anything else. We are essentially right in the middle of the overall range between the ¥150 and ¥155, so this is essentially a “50-50” trade at this point in time.
This does not necessarily mean that it is a market that you can trade at the moment. However, if we fell to the ¥150 level and found plenty of support, that might be an excellent opportunity to get long. To the upside, breaking the ¥155 level again of course would be very bullish as well.
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This article was originally posted on FX Empire
