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

The British pound has rallied a bit during the trading session on Monday, but at this point in time one has to think that it is overstretched against the Japanese yen, at least from a short-term perspective. I would love to see some type of pullback to retest the ¥150 level, which would be an excellent entry from what I can see. That being said, the longer-term target is still the ¥155 level. Regardless, you certainly cannot sell this market and therefore I would simply let this market pullback so I can take advantage of what is an obvious trend. Even if we break down below the ¥150 level, think there is plenty of support at the ¥147.50 level.

GBP/JPY Video 16.03.21

The Japanese yen itself is oversold against just about everything, so keep in mind that it is overdue for some type of recovery. All things been equal, I think that looking at dips as value is the best way to go, and therefore that is how I will be playing not only this pair, but every other yen related pair. All things been equal, a little bit of patience could go long way, especially as we have the Monetary Policy Committee meeting on Thursday in the United Kingdom, and of course the statement that comes along with it as well as any question and answer session statements. With all of that being said, we may have to wait until later in the week to buy this market, because I do not want to be buying up here and begin to “chase the trade.”

For a look at all of today’s economic events, check out our economic calendar.