GBP/JPY Price Forecast – British Pound Continues to See Resistance

The British pound has initially tried to rally against the Japanese yen during the trading session on Tuesday but has failed again. This looks very much like a short-term pullback ready to happen, and I do think that a lot of people will be looking at this as a potential buying opportunity given enough time. That being said, I do think that the market could very well drop 100 pips rather quickly, and at that point in time it would be a potential buying opportunity. The 50 day EMA underneath there should also offer significant support as well, with the ¥140 level. It is not until we break down below the ¥140 level that I would be comfortable shorting this market for any significant amount of time.

GBP/JPY Video 03.02.21

I think that if you simply wait for an opportunity underneath to get involved in the uptrend, that is probably the easiest trade. However, short-term traders may be tempted to sell the market for a quick move. On the other hand, if we were to break higher and above the Monday candlestick, that opens up the possibility of a move to the ¥145 level. The market is a little bit overextended at this point, and therefore the pullback is the most likely of scenarios, but I do think that we will probably see a continuation of the overall trend that we have been involved in for quite some time. This is simply a matter of exhaustion and therefore a corrective phase is probably what we are looking at more than anything else. If we were to break above the ¥145 level, then the market opens up the possibility of an even longer term move.

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