GBP/JPY Price Forecast – British Pound Continues Grind Higher

The British pound has pulled back initially during the trading session on Friday only to find buyers to continue the overall uptrend. Ultimately, the market is likely to continue going to the upside as the 155 level has offered significant support after a major breakout. With that in mind, I do believe that it is only a matter of time before the market reaches towards the 160 handle, which is my interim target. Because of this, I like the idea of buying short-term dips, and approaching this more or less as a “buy-and-hold” type of situation.

GBP/JPY Video 07.06.21

Underneath, the 155 level being broken could open up a move down to the 153.50 handle, where the initial push higher started on the most recent break out. Regardless, this is a nice uptrend and I certainly do not want to fight it, so I think what we have here is a situation where you are either long of the market, or you are on the sidelines. Doing anything else is probably a bit problematic and almost impossible at this point.

Keep in mind that this pair is highly sensitive to the risk appetite of traders in general, so pay close attention to risk assets such as stock indices and commodities, as although they are not necessarily 100% correlated, they can give you a general idea of how traders around the world “feel about the markets.” The better they feel, the higher this pair will go as the Japanese yen is considered to be a safety currency and the British pound of course is more of a “risk on” type of asset.

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