GBP/JPY Price Forecast – British Pound Pulls Back From Major Barrier
The British pound has pulled back a bit during the course of the trading session on Thursday, as the ¥155 level continues to be crucial. If we can break above there, and extend through the ¥156 level, that allows the British pound to continue to climb against the Japanese yen. That being said, a little bit of a pullback does make a certain amount of sense. I have no interest in shorting this market, despite the fact that we are at a major barrier, due to the fact that the overall trend has been strong for so long. Furthermore, as long as we have more of a “risk on attitude” around the world, that typically will lift this pair as well.
GBP/JPY Video 25.06.21
Underneath, I believe that the “floor the market” is centered on the ¥150 level, so it is not until we break down below there that I would be concerned about the overall trend. On the other hand, if we turn around a break above the ¥156 level, then the next obvious target would be the ¥160 level as this pair does tend to move in 500 PIP range.
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Keep in mind that the market is very volatile under the best circumstances, so you should probably reflect is in your position sizing. Nonetheless, we clearly have more bullish pressure than bearish, and that of course is something to keep in mind. If we do break down below the ¥150 region, we could see a significant collapse, because that probably would be the end of the overall trend, which is always a messy affair.
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