GBP/JPY Price Forecast – British pound climbs against Japanese yen

The British pound has rallied against the Japanese yen, extending to the ¥148.50 level. The market looks likely to extend the run higher, but we are getting a bit overdone so I would anticipate some type of pullback to offer value for those who are patient enough to accept it. I would not jump in right here, but I do believe that eventually the market will go looking towards the ¥150 level. Above there, then the market becomes more of a “buy-and-hold market.”

Remember that this market is a bit overextended, so again I believe that we will get an opportunity to pick up this market at a better price. You should also remember that is highly sensitive to global risk appetite, which of course is something that a lot of people are concerned about right now. Headlines will move the market, and quite frankly we need some type of shock to pull the thing back so that we can pick up the pieces on the drop. The ¥150 level above is crucial for the longer-term health of this pair, and I believe that with the lack of monetary tightening coming out of Japan over the foreseeable future, it does make sense of this market goes higher. Another thing that could help is if the conversations between Teresa May and other members of her party and Great Britain become more cordial.

GBP/JPY  Video 13.07.18