GBP/JPY Price Forecast – British Pound Continues to Climb Against Yen

The British pound has rallied against the Japanese yen during the trading session on Tuesday again, as we are now above the 200 day EMA. It looks as if this market is going to continue to see a lot of volatility, but mainly to the upside at this point. The candlestick that formed during the Monday session was very telling, because it had white down a lot of the long wicks to the upside that had shown so much resistance. Clearly at this point the next move seems to be favoring the upside, so as a result there is no point in trying to get too cute with this pair, and because of this it is essentially a “one-way trade”, at least in the time being.

GBP/JPY Video 22.07.20

The ¥140 level above is my target longer-term, and I am holding on for a move to that region. The 50 day EMA underneath is a massive support level based upon the candlestick from the Monday session, because we turned around to wipe out that candlestick, obviously it would be a major shift in attitude. That being said, I do think it is only a matter of time before the buyers step in and pick up dips right along the way, so continue to buy those dips and build a position on the way up for maximum profits. If we can somehow break above the ¥140 level, the British pound is just going to launch into space at that point. In the meantime, momentum has clearly shown itself to be to the upside.

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