GBP/JPY Price Forecast – British Pound Crushes Japanese Yen

The British pound has rallied significantly during the course of the trading session on Friday, as we have blown through the ¥150 level. The Japanese yen itself has been somewhat crushed during the day, so at this point it is likely that we will continue to see buyers jump in, but at this point we have to see whether or not we can make a fresh, new high. If we do, then it opens up the possibility of a move towards the ¥155 level, and it must be stated that the last couple of candlesticks have been extraordinarily bullish. Now that we have seen this move, one would have to think that the buyers will jump in on short-term pullbacks.

GBP/JPY Video 29.03.21

The ¥150 level of course is crucial from a large, round, psychologically significant figure standpoint. The fact that we sliced right through it does tell me that we are going to see more buyers going forward as the momentum is clearly working in favor of the British pound. In fact, I think that a ¥150 level underneath would be supportive, so I think that there would be plenty of interest in picking up “cheap pounds” if we do get that pullback. Having said that, it certainly looks as if the momentum is trying to tell us that is not going to happen, but only time will tell. Either way, there is no way to sell this pair now, at least not until we break down below the most recent low, something that does not look likely after the last couple of candles.

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