GBP/JPY Price Forecast Nov-26, 2021
The ¥152.50 level being broken above would be a huge victory for the buyers, and at this point it looks very possible. As far as selling is concerned, we need to break down below the 200 day EMA to truly fall apart. At that point, we would almost certainly test the ¥150 level, which is what I look at as the “floor in the market” for the buyers. Breaking down below all of that would send this into a massive downtrend, or than likely causing massive destruction.
The pair is highly sensitive to risk appetite, which of course is waning at the moment. Nonetheless, if we do find ourselves breaking above there, then it is very likely that the entire thing would have been shrugged off as far as the virus is concerned, which is something that the markets have done multiple times. Because of this, I remain optimistic, but I also recognize you probably have to deal with quite a bit of volatility in the process of trying to recover. Quite frankly, the biggest regret I have on this is that I was not awake to see it touched the 200 day EMA.