GBP/JPY Price Forecast – British Pound Struggling With Major Resistance Barrier
The British pound initially rallied against the Japanese yen, but as you can see the ¥155 level has been very difficult to overcome, and therefore I think that the market is going to look at this as a major barrier to play against. The market had pulled back from here rather significantly, and it should be noted that we had gotten here rather quickly, so the question is whether or not we are going to continue to see this type of momentum. If we do pull back, it is very likely that the market will go looking towards the ¥152.50 level, an area that previously had been resistance and the longer term look of course is that it is essentially “fair value” in the overall consolidation area.
GBP/JPY Video 14.10.21
If we do break above the ¥155 level significantly on a daily close, then I think we have a good shot and going much higher, reaching towards the ¥157.50 level. After that, then we are looking at the ¥160 level as a potential target. Regardless, I think this is a market that continues to see a lot of noisy behavior, and of course will move back and forth based upon the latest “risk on/risk off” type of attitude. That being said, we have got here rather quickly, and it certainly looks as if we are starting to run out of momentum.
That means we may at the very least get a little bit of a short-term pullback. Quite frankly, if we were to go straight up in the air from here, I would be a bit concerned with this market having a sudden and violent pullback.
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