GBP/JPY Price Forecast – British Pound Pulls Back for Second Day

The British pound has fallen a bit during the trading session on Friday to reach down towards the ¥147.50 level, an area that that has a bit of noise in that general vicinity, but at this point the question is whether or not we can simply hang out here? I do not necessarily want to jump into this market right away, and I think that the patient trader will probably get a better opportunity, but I do recognize that if we turn around a break above the ¥148.50 level, then it is likely that we would go back towards the ¥150 level. That is an area that has been crucial on longer-term charts, and I think it would take quite a bit of effort to break above there, but I do think eventually it happens.

GBP/JPY Video 1.03.21

The ultimate set up would be a pullback towards the ¥145 level, but I am not sure whether or not it is going to be easy to make that happen. We are parabolic at the moment, and the last couple of days has been rather healthy because the market has gotten way ahead of itself. That being said, I still think the correct direction is to the upside so shorting is impossible. All things been equal, I am looking for value to take advantage of as we have seen so much in the way of bullish pressure, and of course we are obviously in an uptrend. Part of trading is simply waiting for an opportunity to take advantage of value, and you do not have value all the way up here.

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