GBP/JPY Price Forecast – British Pound Continues to Test the 140 Level

The British pound has rallied again during the trading session on Thursday to break above the ¥140 level. This is an area that is obviously a large, round, psychologically significant figure, and therefore attracts a certain amount of attention. That being said, the market is likely to continue to go higher, but we need to see the Brexit situation gets solved. It does look like we are starting to make progress in talks, but every time there is a positive headline out there, somebody comes out to throw cold water on it. That being said, longer-term we continue to see market participants jump into this market on every day. This tells me what the market is looking to make a bigger move.

GBP/JPY Video 18.12.20

At this point in time, the market is likely to see the dips as buying opportunities, offering value in a currency that is obviously doing quite well. With that in mind, I think that it is only a matter of time before the market makes its move towards the ¥142.50 level, an area that has been targeted previously. Short-term pullbacks at this point in time should be buying opportunities, all the way down to at least the 50 day EMA which is sitting at the ¥138 region. This is a market that I think continues to be very volatile, but obviously we have a lot to work through between now and the end of the weekend when the timetable is most likely for an actual Brexit deal. Between now and then, the market continues to cling onto hope. Selling is something that I have no interest in doing anytime soon.

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