GBP/JPY Price Forecast – British Pound Continues Parabolic Run

The British pound continues to rally against the Japanese yen, initially dropping a bit during the day on Tuesday before reaching yet another high. At this point, the market seems hell-bent on getting to the ¥155 level, which I do believe is a major barrier. The biggest problem we have here is that is almost impossible to chase this trade after this type of move, and you certainly would not want to short this market. I think the real action will be in January when we start talking about things like the nonfarm payroll, and start pricing in the economic recovery or lack of. Just how erratic this pair has been over the last several months, it is just bounced around like a pinball, seemingly without any idea as to where it wants to go.

GBP/JPY Video 29.12.21

To the downside the ¥152.50 level is supportive, especially with the 50 day EMA sitting right there and turning higher. I think a pullback does make quite a bit of sense, but whether or not we get between now and next year might be a completely different question because quite frankly most people are not going to be wanting to put a ton of money in the work right now the illiquid markets can make for parabolic moves, and this pair is especially susceptible to that type of behavior. Because of this, I am avoiding this pair whatsoever until we get the jobs number coming out next week or we get some type of solid news coming out that makes sense as to be in a market moving event. Until then, this is a market that I think probably better left alone.

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