GBP/JPY Price Forecast – British Pound Continues to Test 145 JPY level

The British pound has rallied a bit during the trading session on Thursday to reach towards the ¥145 level yet again, which of course is an area that has attracted a lot of attention. On longer-term charts, it has been important in the past and now it appears that we are simply trying to break out, and I do think that given enough time we will. However, we have some work to do and likely it is going to be very noisy to break above there. We can break above there, then it is going to be a major move to the upside waiting to happen.

GBP/JPY Video 12.02.21

Short-term pullback should continue to be bought into, due to the fact that we continue to see plenty of volatility and that should offer plenty of opportunity. All things being equal, this is a market that once we break above that ¥145 level, then it opens up the possibility of looking towards the ¥147.50 level. After that, then we would be looking at the ¥150 level. That of course is a large, round, psychologically significant figure from a longer-term standpoint, so it makes quite a bit of sense that we would target that area and then perhaps even see a bit of a reaction.

We are in an uptrend, so I have no interest whatsoever in shorting this market, due to the fact that the British pound in general has been taking off. Furthermore, we are starting to see the Japanese yen gets sold as well, so it is all worth paying attention to at the same time. Pullbacks should continue to be opportunities.

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