GBP/JPY Price Forecast – British Pound Continues to Test Resistance Against Yen

The British pound was quite noisy against the Japanese yen during the trading session on Wednesday as we are approaching the ¥140 level. This is a large, round, psychologically significant figure that of course attracts a lot of attention. Ultimately, this is a market that is very sensitive to risk appetite, so paying attention to that might be worthwhile. Furthermore, we are sitting right at the ¥140 level, which is an area that will attract a significant amount of attention in and of itself due to the large, round, psychologically significant figure aspect.

GBP/JPY Video 20.08.20

If we can clear the ¥140 level on a nice daily close, then it is likely that we will go looking towards the ¥145 level. That is a big move just waiting to happen and I fully embrace the idea that it is coming. However, that does not mean that it happens right away. We may have to kill a little bit of time in this general vicinity before we get that, but right now I think shorting this pair is all but impossible due to the strength that the British pound has shown over time. I like the idea of buying dips, and I most certainly like the idea of buying the breakout on the daily close as it would free up a substantial move. I have no interest in trying to short the pound right now, even though I recognize that it certainly must be getting a bit tired.

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