GBP/JPY Price Forecast – British Pound Continues Massive Run Higher

The British pound has initially fallen a bit during the trading session on Tuesday, but then turned around to skyrocket to the upside yet again as we approach the ¥140 level. This is an area that I had previously mentioned as a potential target, although I am the first to admit that I am surprised how quickly we got there. That being said, I suspect that the British pound is a little overextended at this point and pull back from the ¥140 level would make a certain amount of sense.

GBP/JPY Video 11.11.20

Looking at this chart, the ¥140 level is not only psychologically important, but it is also an area where we have seen some action previously. The usual suspects are in the headlines, namely the Brexit scenario supposedly getting better, although we have seen this movie for over four years now and recognize that we could turn around and fall right back down on the basis of a random Tweet or rumor. That being said, I think that if you are bullish of this market, you need to see some type of pullback in order to take advantage of value. A break above the ¥140 level could open up a move towards the ¥142 level which was where we had broken down from previously.

All of this being said, keep in mind that there is a lot of possible risks out there that could have people looking for the Japanese yen as well. That being said, the market is looking more optimistic than pessimistic, at least at the moment. In general, the one thing you can count on is a lot of erratic behavior.

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