GBP/JPY Price Forecast – British Pound Reaches Major Milestone

The British pound has exploded to the upside yet again during the trading session on Wednesday to reach towards the ¥150 level which of course is a large, round, psychologically significant figure. That is a market level that will attract a lot of attention, but quite frankly this point in time the market is so parabolic that it needs some type of massive correction. That massive correction could be much more violent than people anticipated. That being said, I still believe that the longer-term trend is to the upside, especially near the ¥147.50 level. Underneath there, the ¥145 level is a major area that had been resistance and showed a significant amount of resistance before the explosive move. At this point, I would not be surprised at all if we return to that area before buying.

GBP/JPY Video 25.02.21

The 50 day EMA is reaching towards the level as well, so I think the ¥145 level will be something rather worth watching. Ultimately, I do not think that the market should simply go straight through the ¥150 level, but if we did, that would become extraordinarily parabolic, and very unstable all said and done. Quite frankly, most of the marketplace around the world right now is getting a bit overcooked with the risk appetite, so I think we are due some type of significant pullback. Whether or not we get it here might be a different story, but at the very least we need to cool off in order to be able to keep up the momentum and a market that has gone roughly 80°, which is unsustainable for the longer term. Having said that, I have absolutely zero interest in trying to short this market.

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