GBP/JPY Price Forecast – British Pound Continues to Grind Against Resistance

The British pound has rallied a bit during the trading session on Wednesday but continues to find resistance between the ¥139 and ¥140 levels. Because of this, it makes quite a bit of sense that we have struggled a bit, but if we can break above that ¥140 level it is likely that we will go much higher. At that point I would anticipate that the pair goes looking towards the ¥145 level. Pullbacks at this point in time should be buying opportunities, as the market will more than likely find reasons to recover near the ¥136 level where the 200 day EMA sits and is ready to be crossed by the 50 day EMA.

GBP/JPY Video 13.08.20

All of these things being said, the pair is highly sensitive to risk appetite out there, so pay attention to what goes on in the stock markets as well. Ultimately, I think that this is a pair that does go higher but the question is whether or not we can simply break out or if we need to pullback in order to do so. We should have some type of decision soon, and I am more than willing to go right along with it. However, if we were to break down below the ¥135 level, something that I do not see happening, that would change everything. Until then, I do prefer to buy this market on either the breakout or value offers underneath. The British pound has been extraordinarily bullish against most things, so I do not see that changing longer-term, especially against the Japanese yen of all currencies.

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