GBP/JPY Price Forecast – British Pound Pressing 145 JPY

The British pound is pressing up against the 145 Japanese yen level again, which of course is an area that a lot of people will be paid attention to base upon the fact that it is a large, round, psychologically significant figure, and an area where we have seen a lot of action at previously. If we can break above ¥145, this market is very likely to go looking towards the ¥147.50 level, followed by the ¥150 level. Another thing that could drive this higher is the fact that the GDP numbers coming out of Great Britain were better than anticipated earlier in the day. This simply means that we may have more of a “risk on trade” in the British pound, or at the very least less fear.

GBP/JPY Video 15.02.21

Granted, you can make an argument for this pair being slightly overextended, but you can also make an argument for an ascending triangle leading into the ¥145 level. In other words, the pressure is building, and I do think that we break out sooner rather than later. This is especially true considering that the British pound has broken out against the US dollar in the last couple of days, and typically these things tend to follow each other. I have no interest in shorting this pair and believe that there is a bit of a “floor the market” closer to the ¥142.50 level underneath. As long as there is a certain amount of animal spirits out there in the markets, this pair should do fairly well, as it is such a strong risk barometer.

For a look at all of today’s economic events, check out our economic calendar.