GBP/JPY Price Forecast – British Pound Pulling Back From Major Resistance Barrier

The British pound pulled back just a bit during the course of the trading session on Monday as the risk appetite around the world continues to wane just a bit. The ¥155 level of course is a large, round, psychologically significant figure that a lot of people would be paying close attention to, so with that being the case it is not a huge surprise to see that we have pulled back. However, if we can break above the ¥155 level on a daily close this would be a very bullish sign. At that point, I would anticipate the market going towards the ¥157.50 level, followed by the ¥160 level.

GBP/JPY Video 25.05.21

However, in the short term it looks as if we are likely to pull back in to go looking towards the ¥153 level, maybe even the ¥152.50 level. At that point, we would be testing the bottom of a major extension higher from the impulsive candlestick that we have seen. Furthermore, the gap that sits there could come into play as well. All things being equal, it is likely that we would see buyers coming back in. Regardless, I have no interest whatsoever in trying to short this market, due to the fact that the market is obviously very bullish, so with that being the case it is very difficult to imagine a scenario where I would be trying to short this market anytime soon. Looking at this chart, it is obvious to me that the market is likely to see a lot of choppy behavior, but I still think there are plenty of buyers underneath. All things been equal, I think eventually we do find enough momentum to break out.

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