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.