GBP/JPY Price Forecast – British Pound Breaks Short-Term Resistance

The British pound has rallied significantly during the course of the trading session on Tuesday, mainly in the Asian and European session. That being said, the market is likely to continue running a little higher, mainly due to the Japanese yen, not necessarily the British pound. It should be noted though, the British pound has outperformed in the last 24 hours, so we are starting to see a little bit of a move to the upside. The ¥155 level above is a major resistance barrier, so I do think that it makes a certain amount of sense that we may retest that area. If we can break above there, then it is likely that the market could really start to take off to the upside.

GBP/JPY Video 17.11.21

It is worth noting that this pair is in a bullish market from a longer-term standpoint, so the reality is that we probably have plenty of buyers trying to pick up value. However, if we were to turn around a break down below the ¥152.50 level, then we really could start to break down from that point, perhaps reaching towards the 200 day EMA. That being said, it does not look like we are going to do that now, so I think it is more likely than not that we go looking towards ¥155 over the next couple of days. I would look for short-term pullbacks in order to pick up a little bit of value, but probably more so on the short-term charts than anything else as chasing this trade is probably going to be very dangerous at this point.

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