GBP/JPY Price Forecast – British Pound Continues to Slam Into Ceiling

The British pound has slammed up against the ¥140 level yet again, as we have multiple times. However, one would have to think that sooner or later this market breaks out above there, because quite frankly the resistance can hold forever. The British pound continues to strengthen longer-term, and I do think that it is only a matter of time before we not only break the ¥140 level but go much higher. This will probably coincide with the British pound breaking out against the US dollar and reaching towards the 1.35 handle as well.

GBP/JPY Video 26.08.20

The pair of course does react to the whole idea of “risk on” as it rises right along with it. The Japanese yen is considered to be a bit of a safety currency, so that should be kept in the back of your mind. As stock markets in the United States continue to shoot straight up in the air, I am of the mind that this pair probably continues to go higher, based upon that alone.

Having said that, the British pound itself is strong and of course the Bank of Japan continues to loosen monetary policy as it has been doing for decades. Given enough time, I think we reach the ¥145 level, and it now looks as if the ¥138 level is solidifying itself as massive support. Because of this, I like the idea of buying dips, and of course the breakout if and when it comes. I have no interest in shorting this pair anytime soon.

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