GBP/JPY Price Forecast – British Pound Getting Overextended Again
The British pound has rallied rather nicely during the trading session on Monday but continues to find gravity to be one of the biggest issues. The ¥148 level has seen some pushback, and quite frankly I think at this point we need to pullback in order to come back to reality. The market has been very parabolic, and as a result I think eventually we could go looking towards the ¥145 level underneath. That is an area that I think is the “floor in the market”, so therefore I will be looking for value underneath, especially at that level, but also recognize that perhaps the ¥146.50 level could work just as well, maybe with a little bit of sideways action.
GBP/JPY Video 23.02.21
Keep in mind that this pair is highly sensitive to risk appetite, so pay close attention to how that is behaving around the world. One of the best ways to keep an eye on that is to simply look at some of the world’s biggest stock market such as the S&P 500, DAX, FTSE 100, and the like. Ultimately, if the stock markets around the world pull back a bit, that could be trouble for this pair as people will rush towards the safety of the Japanese yen.
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On the other hand, if we continue the rampant speculation and risk assets, that should send this pair looking towards the ¥150 level. I think at one point, the market will get there, but I would be much more comfortable with some type of pullback initially in order to get involved in what is an obvious uptrend.
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