GBP/JPY Weekly Price Forecast – British Pound Finds Plenty of Support

The British pound initially fell during most of the week but found plenty of support underneath the turn things around and form a bit of a hammer. With this being the case, the market is likely to continue to see upward pressure on dips, and perhaps an attempt to break out to the upside. That being said, the market is clearly attracted to the ¥155 level, and it is also very stretched at this point. Ultimately, this is a market that I think is trying to build up enough momentum to break out to the upside.

GBP/JPY Video 14.05.21

If we break down below the bottom of the candlestick for the week, then we could reach towards the ¥153.50 level, where we have seen quite a bit of action at previously. After that, then the ¥150 level continues to be an area that you would probably look at the market through the prism of massive support as well. It is not until we break down below there that I would consider shorting this market, and even then, I would have to see how the economic outlook appears.

All things been equal, I think it is much more likely that we would see a move to the upside than down, as we are reaching into a significant amount of resistance from a longer-term chart, but ultimately it looks as if the buyers are going to be relentless. With this being the case, the market is likely to see a lot of choppy behavior but with more or less a preference to the upside overall. Keep in mind that the pair also has a lot of influence externally as far as risk appetite is concerned as well.

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