GBP/JPY Price Forecast – British Pound Recovers Against Japanese Yen to Kickoff Tuesday Session

The British pound has shown itself to be bullish overall, suggesting that the market could break out to the upside yet again. The Japanese yen has been beaten up by a several currencies recently, and I think that is going to continue to be the case going forward. Underneath, I see the ¥155 level as a potential support level that a lot of people will have to pay close attention to. The ¥155 level is an area that was a previous major high, and therefore a certain amount of “market memory” could come into the picture and offer support.

GBP/JPY Video 27.10.21

Breaking down below that level could open up the move down to the ¥152.50 level, but I do not necessarily see that happening anytime soon. Because of this, I think that what we see here is an opportunity to take advantage of any dip as value, as the market looks likely to go looking towards the ¥160 level above, which is the next major target. Ultimately, I have no interest in shorting this market anytime soon and I would also point out that it has a large correlation to the risk appetite of traders around the world, meaning that if stock markets do in fact continue to rally, that generally makes this market go higher as the Japanese yen is considered to be a “safety currency.” All things been equal, we are either getting ready to break out, or form some type of bullish flag from what I can see. There is nothing on this chart that suggests weakness anytime soon.

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