GBP/JPY Price Forecast – British Pound Continuing to Extend

The British pound has gone back and forth during the trading session again on Monday as traders came back to work. That being said, the European session was thin due to the fact that it was Easter Monday, but at the end of the day the Americans came back to work and this of course means that we can get back to trading. At this point, the market is likely to see a lot of volatility, but at the end of the day if we do pull back, I think what we start looking for is buying opportunities.

GBP/JPY Video 06.04.21

The ¥150 level underneath should be supportive and should also pay close attention to the 50 day EMA which sits underneath near the ¥148 level. The market is clearly in an uptrend and therefore all I will be doing is buying. We may need to pull back a little bit in order to find value, but at the end of the day I do think that there will be plenty of people out there getting involved to try to take advantage of what has been such a huge move to the upside.

On the other hand, if we were to break down below the 50 day EMA, then I think the market probably has much deeper to go as far as the correction is concerned, but really at this point I am not sure exactly when the downtrend would continue, so I would have to take any selling opportunity as they come. Currently, I am not looking for one.

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