GBP/JPY Price Forecast – British Pound Testing Major ResistanceThe British pound rallied significantly on Thursday as it broke above the ¥140 level. This of course is a large, round, psychologically significant figure.
The British pound has rallied significantly during the trading session on Thursday to break above the ¥140 level early during the day. The pair does seem to be getting ready to break out, and now that we are piercing this level, it shows that we will more than likely eventually do that. By doing so, it could open up a huge move towards the ¥145 level, although it will take a certain amount of time. When you look at the chart, you can make an argument for the market just breaking out of a bullish flag, and now trying to get over the resistance barrier.
GBP/JPY Video 14.08.20
At this point, the market should be a buying opportunity on dips, and I do think that it is only a matter of time before a lot of traders take advantage of this. With this being the case, the market is likely to continue to see a lot of interest in going long, as this pair is highly sensitive to risk appetite, which seems to be increasing over time. After all, stock markets are reaching all-time highs in the United States, so that is a good sign that risk appetite has returned.
Furthermore, the British pound continues to be bought overall, so that is a bit of a “one-two punch” of this pair going higher. The market continues to be very noisy, but overall, this is a very strong market that continues to look like it will attract more buyers. I have no interest in shorting this pair, and even if we did break down from here, I think that the 200 day EMA underneath would be massive support as well.
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