GBP/JPY Weekly Price Forecast – British Pound Recovers Nicely For the Week

The British pound has initially pulled back a bit during the course of the week but then turned around to show signs of life again. With that being the case, the market looks as if it is going to try to take out the highs of the previous week, and perhaps could go looking towards the ¥155 level given enough time. Because of this, it is very likely that the market will continue to see a lot of noisy behavior, but if we can take out the highs of the previous week, which should provide more of a rush towards this market.

GBP/JPY Video 09.08.21

To the downside, the ¥150 level is massive support, so as long as we do not break down below there you can still make an argument for the market being strong. The trend has been very bullish for quite some time, only slowing down of the last couple of months. The 155 level above is going to be difficult to break out above, but if and when we do that would be an extraordinarily bullish sign. At that point, I would anticipate that would have a longer-term “buy-and-hold” type of situation. It would also be seen in other market such as stock market, and of course some commodities.

As I record this though, there is the likelihood that we simply sit in this range as we are heading into the weekend. Keep an eye on the top of the shooting star from the previous week, it gives you an idea as to where the barrier is for a bit of a bigger move. If we can get above there on a daily close, the weekly chart should start to look very healthy.

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This article was originally posted on FX Empire