GBP/JPY Price Forecast -British Pound Continues to Test 150 JPY

The British pound has slammed into the ¥150 level, an area that of course is a large, round, psychologically significant figure and an area that has already caused resistance as of late. That being the case, it is not a huge surprise that we have pulled back a couple of times only to continue to press the issue. The British pound certainly looks as if it wants to continue going higher and take off to the upside based upon the overall “risk on” attitude of traders around the world. As long as that continues to be the case, then I like the idea of buying on a breakout above the highs from the Thursday session.

GBP/JPY Video 8.03.21

On pullbacks, we should see plenty of support all the way down to at least the ¥147.50 level, and then down to the ¥145 level. All things being equal, we should look at the ¥145 level as a potential “floor the market”, especially as the 50 day EMA is starting to come into the picture. With that being the case, I think that this is a” buy on the dips” type of situation in general. Nonetheless, this is a market that you cannot sell, even if we do see some type of pullback. I do believe that this will continue to move right along with risk appetite, and the fact that the US dollar has been absolutely crushing the Japanese yen shows just how much weakness there is in that currency to begin with. With that being the case, I like the idea of an eventual breakout to reach towards the ¥152.50 level, and then the ¥150 level.

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