GBP/JPY Price Forecast – British Pound Continues to Power Ahead

The British pound has rallied significantly during the trading session on Thursday to show continued strength as we have cleared the ¥151 level again. That of course is a bullish sign, but underneath I do believe that the ¥150 level is an area worth watching, because it had been resistance previously. We are a bit stretched, but that is common for this pair and as long as we can hang on to the ¥150 region, we will probably chop around and eventually go to the upside. The attitude of course remains bullish, but at this point in time we probably need to look at short-term pullbacks in order to get involved in.

GBP/JPY Video 12.03.21

As long as we can stay in the ¥150 region, I think that a lot of buyers will come in and pick this market up every time it dips. After that, then I would look at the ¥147.50 level as support and a potential buying opportunity, and then down to the ¥145 level I think would be the next major support level. Anything below there would be a severe change in attitude, and of course could cause major issues. Having said that, I do not expect that to happen anytime soon so I remain bullish, but I also recognize that we are a bit stretched so finding value without a doubt will be one of the best ways you can play this market. I have no interest in shorting, at least not until we break down below that crucial ¥145 level.

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