GBP/JPY Price Forecast – British Pound Continues to Skyrocket Towards ¥155
The British pound has initially pulled back just a bit against the Japanese yen during Asian trading, only to turn around and rally yet again. The market looks as if it is going to try to rocket towards the ¥155 level, an area that has been resistance more than once. It will be interesting to see how we behave in that general vicinity, because quite frankly the Japanese yen is oversold around the world.
GBP/JPY Video 13.10.21
At this point in time, I think that you need to pay close attention to the ¥155 level, because quite frankly it is not only a large, round, psychologically significant figure, but it has been a clearly defined resistance barrier more than once. Because of this, I do like the idea of selling signs of exhaustion because we are overbought, but if we get a daily close well above that level, you cannot ignore that. At that point, you would anticipate that this market may go looking towards the ¥157.50 level.
Regardless, I think this is a market that will continue to be very volatile, and the British pound of course is all over the place in general. I think if you are going to trade this market, you need to pay attention to the USD/JPY pair, because it gives you an idea as to the overall strength or weakness of the Japanese yen from a more neutral perspective. On a turnaround, I believe that the ¥152.50 level will be an area that you could see a certain amount of supportive action as it has been “fair value” for quite some time.
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