GBP/JPY Weekly Forecast – British Pound Gives Up Early Gains for the Week

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has initially tried to rally against the Japanese yen during the course of the week, but gave a back quite a bit of the momentum to end up forming a shooting star. That’s a particularly ugly look, it is worth noting that every time we get above the ¥185 level, it seems like there is a bit of resistance. The last time we were up in this area, the market ended up forming a bit of a forest of wicks, and it looks like that area will continue to be a major problem.

If we were to break down below the bottom of the shooting star, we will probably go looking toward support underneath, near the bottom of the candlestick, which is right around the ¥181 level. That’s assuming that we can even drop that far. With that being said, I think we got a scenario where the market will continue to be noisy, and of course you have to keep in mind that the pair does tend to be very sensitive to risk appetite, rising and falling right along with it.

In general, I think this is a market that continues to see a lot of noisy behavior, but with that being said, I think you have to look at this through the prism of a market that is consolidating after a huge run higher earlier this year. With this, I’m a buyer of dips, but if we were to break above the ¥187 level, it would send this market much higher, perhaps allowing the British pound to finally reach the ¥190 level, followed by the ¥200 level before it’s all said and done.

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