GBP/JPY Price Forecast – market continues to consolidate overall

The British pound initially tried to rally, but then gave back most of the gains during the day on Thursday, as we continue to jostle around and try to build up enough momentum to perhaps break out to the upside. I do see several support levels underneath, and that of course will come back into play sooner or later. I believe that the ¥146 level underneath is supportive, and most certainly the ¥145 level is supportive as well. I think that given enough time, we should see a bit of a bounce, and it’s likely that people will eventually see that pullback as a potential buying opportunity.

Remember that this pair is a very risk sensitive pair, as it tends to move with the overall attitude of stock markets around the world. If they rally, that should send this market higher longer term, but I recognize that there is a major amount of resistance at not only the ¥148 level, but also the ¥149 level and the ¥150 level. I think that the market breaking above the ¥150 level would send this market much higher. I don’t think it’s going to be easy to do anytime soon, so I think that the market will continue to be very choppy and should be thought of as slightly range bound with an upward bias. While we may break down a little bit in the short term, I would still wait for buying opportunities.