GBP/JPY Price Forecast – British Pound Pulls Back Against the YenThe British pound has pulled back a bit during the trading session on Friday, as we continue to see it bounced around against the Japanese yen overall.
The British pound continues to bounce back and forth between the ¥138 level and the ¥139 level, which means to me that we are trying everything we can to turn things around and either pull back to find more support, which I am more than willing to jump in and pick up value in, or build up enough momentum to break above ¥139 and take on the ¥140 level. If we can break above the ¥140 level, I believe that we are looking at the ¥145 given enough time. I believe we get there either way, at this point the question is more or less what the path will be.
GBP/JPY Video 10.08.20
I have to question whether or not we need a short-term pullback to build up momentum, or can we simply grind away and then finally break out? The pair is highly sensitive to risk appetite, so keep that in mind but it is also worth keeping an eye on the USD/JPY pair, because if we do continue to drop there, that might be just enough to have this market pullback. However, it is going to slow down the ascent of this pair just due to the fact that the Japanese yen measured against the US dollar is a major measuring stick for strength or weakness. Longer-term though, I do think that we go higher, regardless of what happens over there, but it can cause short-term problems. All things being equal I think that we are just sitting around and waiting for a buying opportunity. That might be early next week.
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