GBP/JPY Price Forecast – British pound rallies against Japanese yen

The British pound has rallied significantly during the day on Monday to kick off the week, reaching towards ¥147.50 level. I think at this point, we are very likely to go looking towards the ¥148 level, and then perhaps even the ¥150 level. The Higher to start the week of course is a very bullish sign and should now offer a bit of a “floor” at the ¥146.50 level. I anticipate that the buyers will continue to jump into this market on the dips and signs of support, and therefore it’s likely that we will continue to find reasons to go higher. If we turned around broke below the gap though, that could be a very negative sign and unwind the market down to the ¥146 level.

All things been equal though, it looks as if the British pound is enjoying a bit of a resurgence, and that of course should show itself over here just as it has against the US dollar. Both markets are currently pressing against significant resistance though, so I anticipate that value hunters will get their wish relatively soon, a pullback that gives them an opportunity to get into the market and take advantage of what seems to be a serious trend change. I don’t know if we can break above the ¥150 level anytime soon, but it certainly looks like a large target that most traders will be paying attention to.

GBP/JPY  Video 10.07.18