GBP/JPY Price Forecast – British Pound Breaking 150 Yen

The British pound has rallied a bit during the trading session on Thursday to break above the ¥150 level. That is a very bullish sign, but we are a bit parabolic at this point in time, so I would not be surprised at all to see this market pullback from here. Ultimately, I think that the market will find plenty of buyers underneath in order to get long yet again. The ¥147.50 level would be an area that I think a lot of people would be interested in, and most certainly the ¥145 level will be. The 50 day EMA is reaching towards the ¥145 level, so it all ties together quite nicely.

GBP/JPY Video 26.02.21

That being said, I think that it is only a matter of time before we can get to the upside and I think that is probably how you have to look at this market, as one that will offer the occasional value play that you can take advantage of. This is clearly a “risk on” type of move, and therefore I have no interest in shorting this market whatsoever. I think that if you are patient enough you should get plenty of opportunities to get long of this market. The ¥150 level of course is a headline grabbing type of level, but clearly, we have much further to go to the upside.

I am skittish about buying the market all the way up here though, because quite frankly one has to wonder how much more momentum we can continue to produce? This will be especially true as we head into the weekend so I think that if you are patient you should get an opportunity. The alternate scenario is that we go sideways around the ¥150 level, working off some froth and then go higher. I would be okay with either one of those scenarios.

For a look at all of today’s economic events, check out our economic calendar.