GBP/JPY Price Forecast – British Pound Slams Into Major Resistance
The British pound rallied a bit during the trading session on Thursday to reach towards the ¥140 level. That of course is a large, round, psychologically significant figure that people will be paying attention to. If the market were to break above there, we could get a bit of a move towards the ¥143 level. That being said, this market is very sensitive to risk appetite, which of course is mainly due to the fact that the Japanese yen is considered to be the major “safety currency” for FX participants.
GBP/JPY Video 04.12.20
Looking at the chart, if we break above here then we could go looking towards the ¥143 level rather quickly because it will more than likely have something to do with a Brexit deal. The biggest problem that we are going to run into here is that it may not be finalized until the weekend, assuming it is at all. Most of the noise that is coming out the negotiation suggests that they are trying to make progress, but we have been through this before so there is still the possibility of a major letdown. If we do get some type of pullback though, that should continue to be an opportunity to buy the British pound “on the cheap” against the Japanese yen.
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The only way I would be a seller of this pair is if we get a definitive “no Brexit deal” type of situation. Until then, this is a market that should be one that explodes to the upside, and it certainly looks as if we are trying to build up enough pressure to go much higher.
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