GBP/JPY Price Forecast – British Pound Continues to Form Bullish Flag

The British pound has rallied a bit during the course of the trading session on Thursday as we await the jobs figure on Friday. That being said, the market is likely to continue to be volatile but the most important thing to look at from a technical analysis standpoint is the fact that the ¥155 level has offered substantial support. This means that it should now function as a bit of a “floor in the market” now that we have broken well above it. With this being the case, it is very likely that we will continue to go looking towards the ¥160 level over the longer term.

GBP/JPY Video 04.06.21

Even if we do break down below that ¥155 level, I think what we are more than likely going to see is the ¥153.50 level offer support as well. With this being the case, I like the idea of buying dips as they occur, as it gives us an opportunity to pick up a little bit of value in what has been a very strong uptrend. Remember, there is more of a “risk on” attitude to the overall markets, so it certainly makes a decent amount of sense for the dips to continue to be bought. If we did break down below that ¥153.50 level, then I anticipate that there are multiple areas between there and the ¥150 level that could in fact support the British pound against the Japanese yen as we have seen such strength. It is not until we break down below the ¥150 level that I would be concerned about the overall uptrend.

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