GBP/JPY Price Forecast – The British Pound Continues to Find Sellers in The Same Level

The British pound has rallied a bit during the course of the trading session on Thursday against the Japanese yen to go looking towards the ¥152.50 level, which is an area that is right in the middle of the larger consolidation area that we have been in. Because of this, I think that we will continue to dance around this area until we get a bit of confirmation as to what the risk appetite is going to be. That being said, if we were to break above the shooting star from last week, then it is likely that the market could go looking towards the ¥155 level.

GBP/JPY Video 06.08.21

On the other hand, if we were to break down below the bottom of the candlestick for the trading session on Thursday, then it is likely that we could go lower. At that point I would expect the ¥151.50 level to be tested, and then perhaps the market to break down below the 152 the ¥150 level which of course is a large, round, psychologically important figure.

We had bounced hard from there, so now we need to see whether or not we can continue the overall move and bounce from that level, or are we going to run into more” risk on behavior”? I think we are on the precipice of finding out, so right now I am a bit neutral in this market, but I am looking towards the downside so far.

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