GBP/JPY Price Forecast – British Pound Continues to Grind Higher

The British pound has shown itself to be resilient and strong against the Japanese yen, even after the pushback late Friday. At this point, it looks as if the market is going to try to continue going higher, as clearing the ¥140 barrier was a major accomplishment. Because of this, I do believe that we will go looking towards the ¥145 level over the longer term but see the ¥142.50 level as a potential barrier as well. Ultimately, I do believe that it is only a matter of time before buyers come in on these dips, so thereby offering a “pick up value” type of scenario.

GBP/JPY Video 01.09.20

I believe at this point in time there is a massive support barrier that extends down to the ¥139 level, so if we were to break down below there it would change a lot of things. At this point though, that does not look to be very likely and therefore I do believe that we will continue to see plenty of support going forward, not only because of the relative weakness of the Japanese yen, but the fact that the British pound has been so strong against the US dollar.

Remember, both of these currencies have a major benchmark in the United States dollar. The British pound is gaining against the US dollar, while the US dollar is holding its own against the Japanese yen. This by its very definition pushes GBP/JPY higher. Triangulation is very important to pay attention to when trading these cross pairs.

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