GBP/JPY Price Forecast – British Pound Shoots Higher Against Japanese Yen
The British pound broke higher during the trading session on Wednesday, breaking above the ¥144.50 level in order to show signs of strength yet again. It looks as if we are going to try to go towards the highs again, as the value hunters continue to come back into play. The Japanese yen is of course a very strong proxy for safety, so as this market rallies, it will continue to show that the market is willing to take more risk out there. Furthermore, the market has found plenty of support underneath at the 50 day EMA, showing signs of a continuation of the overall uptrend.
GBP/JPY Video 23.01.20
Don’t be wrong, the market is certainly going to see a lot of resistance above but given enough time we should eventually break out and go looking towards the ¥150 level. At this point, I have no interest in shorting this market until we break down below the ¥140 level on a daily close, and therefore it’s likely that the market will continue to see a lot of dips be bought long before that happens. I don’t anticipate that this market will break down significantly so therefore I believe that it has already made it statement: that it is going to go higher and eventually try to break out above to fresh, new highs. With this, buying dips works, and adding as the market moves in your favor to build up a larger core position. Quite frankly, it looks as if the British pound has picked up its momentum yet again.
Please let us know what you think in the comments below