GBP/JPY Price Forecast – British Pound Skyrockets Against Japanese Yen

The British pound has rallied rather significantly against the Japanese yen during the trading session on Monday, reaching towards the ¥154.25 level as I record this. The area above at the ¥155 level is a significant barrier, but it certainly looks as if we are going to test that region. If we can break above there, that would obviously be a very bullish sign and could open up the possibility of a move towards the ¥157.50 level.

GBP/JPY Video 12.10.21

Underneath, the ¥152.50 level now should offer a little bit of support, as it was previous resistance. That is an area that being broken above is obviously very bullish sign, and therefore it looks like the market will continue to be more of a “buy on the dips” situation, but you should also pay close attention to the USD/JPY pair. It seems to be more or less a move based upon the Japanese yen than anything else, so it is also worth paying attention to the fact that the GBP/USD pair seems to be running into a bit of resistance. In other words, this is all about the Japanese yen from what I can tell.

If we turn around and broke down below the ¥152.50 level, then it is likely that we could go looking towards the ¥150 level, an area that has been massive support. What once looked like a topping pattern suddenly is starting to look more like a larger consolidation area yet again. With this, I think we have a lot of noise over the last couple of days that we need to deal with. That being said, if we were to break out above the ¥155 level, then I might be more of a “buy-and-hold” type of trader.

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