GBP/JPY Price Forecast – British Pound Attempting Major Breakout
The British pound has rallied again against the Japanese yen to reach towards the ¥150 level again. The ¥150 level of course is a large, round, psychologically significant figure, so it could in fact be a sign that we are ready to go much higher. We have had a reasonable pullback towards the ¥147.50 level, only to turn around and bounce significantly. The question now is whether or not we can hang on for a bigger move? At this point, it could open up a move towards the ¥154.50 level, possibly even the ¥155 level.
GBP/JPY Video 5.03.21
Keep in mind that this pair is highly sensitive to risk appetite, and as long as we have it, that should continue to see this pair grind to the upside. Yes, we are a little bit overdone but after the short-term pullback it looks like we could be getting ready for some type of bigger move to the upside. Pullbacks at this point in time should be buying opportunities that we can take advantage of and given enough time I do think that if we get some type of major “risk on move” in the world’s equity markets, it is likely that we would go looking much higher.
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On the other hand, if we were to break down below the ¥147.50 level, the market could go looking towards the ¥145 level. That area features the 50 day EMA, which of course attracts a lot of attention as well. Ultimately, I have no interest in trying to short this pair, because I do believe that fighting this type of trend is very difficult.
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