GBP/JPY Price Forecast – British Pound Continues Overall Bullish Momentum

The British pound continues to go back and forth near the ¥140 level, an area that has been rather resistive more than once. Ultimately, I think that the market is going to break out to the upside, the question is when it breaks out to the upside. Ultimately, I think that buying short-term dips should continue to work out, but we could get a significant pullback between now and the bigger move. In fact, I think the real support is closer to the ¥138 level, meaning that you need to be prepared for that type of move. However, if we can break out to the upside then I believe that the market is going to go all the way to the ¥145 level.

GBP/JPY Video 28.08.20

The candlestick from Wednesday was rather quiet, as we continue to see a lot of noise in this general vicinity. I do believe that it is only a matter of time before we break out though, so I look at short-term pullbacks as potential opportunities, albeit in a very noisy market. I would be very cautious about jumping in with both feet right away, but I do think that given enough time you can start to add to a position and ride this move much higher. The downside is not even a thought at this point, although if that changes, I will of course let you know here at FX Empire. The British pound has been strong, and I believe it will continue to be so. For what it is worth, the AUD/JPY and NZD/JPY pairs look very similar.

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