GBP/JPY Price Forecast – British Pound Continues to Skyrocket

The British pound has rallied significantly against the Japanese Yen yet again during the trading session on Tuesday, as we have cleared the ¥151 level. At this point, the market does look a bit stretched but we have recently consolidated and killed some time right around the ¥150 level. This is exactly what you need to see, so I do think that a rally is probably somewhat sustainable in this area. Remember, this pair is very volatile, so it will rise and fall right along with risk appetite, but if we do see a certain amount of “risk on trading”, that should continue to push this pair higher over the longer term.

GBP/JPY Video 10.03.21

Looking at the ¥150 level, and now looks as if it is going to be supportive, and perhaps the “bottom of the market.” I think that is your floor, so as long as we can stay above there, I think that you have to be a buyer of dips and cannot look at shorting this market anytime soon. I do believe that we will eventually go looking towards the ¥152.50 level, possibly even the ¥155 level. Looking at the longer-term charts, that certainly would make quite a bit of sense, so I do like the idea of taking advantage of dips to get to that area.

Having said that, if we were to break down below the ¥149 level, then I would be concerned about the market pulling back much deeper. In the short term though, I do not think that is a major concern, so I like the idea of taking advantage of opportunities as they present themselves.

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