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GBP/JPY Price Forecast – British Pound Continues to Struggle with ¥155

By:
Christopher Lewis
Published: May 25, 2021, 14:40 UTC

The British pound has tried to rally during the trading session but gave back the gains as we continue to see a lot of noisy behavior in general.

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The British pound has rallied rather significantly during the course of the trading session on Tuesday as we continue to press the ¥155 level. That being said, the market has pulled back a bit from there and it certainly looks as if we would probably have the possibility of an attempt to break higher. Nonetheless, I do think that this is a market that given enough time will find reasons to try to break out above there. As we have such significant momentum from the longer-term standpoint. If we can do that, then I think the market has much further to go, perhaps the ¥157.50 level, followed by the ¥160 level.

GBP/JPY Video 26.05.21

Underneath, I believe that the ¥152.50 level is going to offer significant support in what has been a very strong uptrend to begin with. With that in mind, I have no interest whatsoever in trying to short this market, and I look at pullbacks as potential buying opportunities. With this being the case, if we get a bit of a dip, I look at it as a potential buying opportunity more than anything else.

The candlestick for the session was a little discouraging, but at the end of the day I do not think it makes a lot of sense to be overly concerned about it when you look at the totality of the way the markets been going. This is a risk on/risk off type of situation, so if market starts to “feel better”, this is a market that should do fairly well.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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