GBP/JPY Price Forecast – British Pound Loses Momentum

The British pound has gone back and forth during the course of the trading session on Monday, showing signs of hesitation right around the ¥157 level. Quite frankly, this is a market that desperately needs some type of pullback because it cannot go straight up in the air forever, and the further that we go to the upside without any type of pullback, the more likely it is that the pullback will be vicious when it does in fact show up. With that in mind, it is obvious that this is a market you cannot be short of, so it is worth buying on dips, and I would be very interested near the ¥155 level.

GBP/JPY Video 19.10.21

If we break down below there, then you could be talking about a move down to ¥152.50, an area that had previously been resistance. “Market memory” should come into play and with the market at that point. Furthermore, you should note that the Japanese yen is being beaten up across-the-board, so it is not going to be just in this pair. When you look at this chart, it is easy to see that we are overdone, and I think only the truly reckless are trying to buy at these levels.

The only thing that I can think of that would be more dangerous than buying this market all the way appear is trying to short a market that has been that strong. In other words, if you are not already involved in this market, you are better served waiting for an opportunity to pick up value. Sometimes, we are paid to wait when it comes to financial markets.

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