GBP/JPY Price Forecast – British Pound Slams Into Big Figure
The British pound rallied significantly during the trading session on Wednesday, piercing the ¥140 level. At this point, the market looks as if it is getting a bit overextended, and therefore it is likely that we will see some type of major pull back. At this point in time, I suspect that we could drop as low as the ¥138 level before finding buyers. After all, we have gotten so far ahead of ourselves that it is difficult to imagine that we will simply just rip higher. Do not get me wrong, I do not think the trend has the likelihood of changing, just that we have gotten too far bullish.
GBP/JPY Video 12.11.20
If we do break above the top of the candlestick for the trading session, then it is likely that the market will go looking towards the ¥143 level given enough time. In the short term I suspect that we get a pullback that offers value, so if you are still bullish of this pair you should be looking for value. There is no point in “paying up” over a couple of handles if you do not have to. This is especially true considering that this pair is going to be sensitive to Brexit which of course is the gift that keeps on giving when it comes to volatility. The Japanese yen and is a safety currency so if we get some type of bad economic news around the world, that could send this pair lower as well. That being said, the British pound seems to be trading in a vacuum as of late.
For a look at all of today’s economic events, check out our economic calendar.