GBP/JPY Price Forecast – British Pound Pulling Back Toward Support

The British pound has gone back and forth during the trading session on Thursday, looking as if we are going to try to find value underneath. Ultimately, the ¥138 level has offered support previously, so I think that the buyers will almost certainly come back by then. Buying short-term dips will continue to work, as we try to build up the necessary momentum for a break above the ¥140 level. Ultimately, this is a market that also is looking at the 50 day EMA crossing above the 200 day EMA, which is essentially the longer-term signal that people truly like, as it is the “golden cross.” That in and of itself will attract a certain amount of traders anyway.

GBP/JPY Video 21.08.20

If we can finally break above the ¥140 level, then we could get a bigger move, perhaps opening up the market towards the ¥145 level. Ultimately, even if we do break down from here, I think that the ¥136 level should be supportive as well, so I would be more than willing to pick up some value in that general vicinity. I have no interest in shorting this market, especially if we continue to see stock markets reach towards new highs as this pair does tend to be sensitive to that, then we should continue to go much higher. Ultimately, buying on the dips will continue to be the best way forward and therefore I have no interest in shorting this market. Ultimately, I am simply looking for some type of bounce to take a hold of.

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