GBP/JPY Price Forecast – British Pound Continues to Levitate

The British pound went back and forth during the course of the trading session on Thursday as we continue to see strength overall coming from the Pound, and against the Japanese yen which has been beaten down so severely, it should not surprise anyone that we continue to see elevated prices. We are currently hanging around the ¥152.50 level, an area that I suggested could be resistance. At this point, we need to build up the necessary momentum to finally break through there.

GBP/JPY Video 02.04.21

Pullbacks at this point in time should be thought of as potential buying opportunities, because quite frankly this is a market that has essentially been on fire. With that being the case, it is very likely that value hunters will return to this market and it is quite possible that the ¥150 level underneath is a floor now, so I think that if we do get a little bit of a pullback, a lot of traders will be willing to come in and pick this up. The 50 day EMA is also reaching towards that area, so I believe it is only a matter of time before we would see a certain amount of aggression in that area.

If we were to break down below the 50 day EMA, then it is possible that we could go down to the ¥145 level, where I think it would be another argument just waiting to happen. Looking at this market through the longer-term aspect, I do believe that we are eventually going to reach towards the ¥155 level, it is just a matter of trying to build up the necessary momentum to get there.

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