GBP/JPY Price Forecast – British Pound Continues to Form Pennant

The British pound has pulled back just a bit over the last couple weeks, but it looks as if we are trying to turn things around and rally a bit. The bullish pennant suggests that we are ready to go much higher, and it should be noted that the Japanese yen has been selling off against most currencies, so that the simply just a follow-through of the overall attitude. At this point, I believe that the ¥155 level continues to offer support underneath, especially as the 50 day EMA is reaching towards it.

GBP/JPY Video 02.11.21

Even if we were to break down below the ¥155 level, then I believe that there is plenty of support near the ¥152.50 level as well. The 200 day EMA has now cleared the ¥155 level, and therefore it is very likely that we would continue to see plenty of value hunters underneath. Quite frankly, breaking above the ¥155 level has been a very good sign for the market in general, showing signs of bullish pressure that is only building up at this point, and it certainly looks as if we are trying to send this market much higher, and breaking out to a fresh, new high could open up the possibility of a move towards the ¥160 level rather quickly.

After that, then it becomes more of a “buy-and-hold” type of scenario going forward. Keep in mind that this pair is highly sensitive to the risk appetite of markets around the world, so pay close attention to what the stock markets are doing globally, because it can give you an idea as to which direction we are running.

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