GBP/JPY Price Forecast – British Pound Showing Buoyancy

GBP/JPY Video 03.09.20

The British pound initially fell against the Japanese yen during the trading session on Wednesday but continues to show signs of life as we turned around to get close to breakeven as New York came online. Ultimately, this is a market that is a little stretched but the question here is not so much as to whether or not it is in an uptrend, but whether or not it is in a scenario where people will be looking for a pullback, or are they looking to consolidate?

Both of these are feasible scenarios, and both of which am perfectly fine with. At this point, it is simply a matter of the market getting used to being in this general vicinity. With that in mind, I look at the structure is one that house a lot of support underneath at the ¥140 level, an area that of course is a large, round, psychologically significant figure. The 142.50 level on the chart is a bit resistive, but I believe it is a temporary issue more than anything else. Ultimately, it is very likely that this pair goes looking towards the ¥145 level, as the British pound is favored in of course the Bank of Japan has such a loose monetary policy.

Furthermore, keep in mind that this pair does tend to rally right along with risk appetite, something that seems to be very strong at the moment as stock indices around the world continue to rise, especially in the United States. All things being equal, I do believe that this is a market that eventually shows itself to be very strong.

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