GBP/JPY Price Forecast – British Pound Turned Around to Show Signs of ResiliencyThe British pound turned around during the trading session on Thursday after the CPI numbers came out. By doing so, we have moved to reach towards the ¥155 level.
The British pound initially fell during trading on Thursday but turned around to show signs of resiliency as we have recaptured the ¥155 level. That of course is a good sign, and it does suggest that we are going to continue the overall uptrend, allowing this market to perhaps go looking towards the ¥157.50 level, and then after that potentially even as high as the ¥160 level.
GBP/JPY Video 11.06.21
To the downside, I believe that the ¥153.50 level should offer support, as we continue to see the overall uptrend continue, and therefore push this market much higher. All things been equal, I do not have any interest in shorting this market as it is so strong, and we of course are in an uptrend. This does not necessarily mean that we go straight up in the air forever, but it does suggest that the buyers continue to be very strong, so therefore it is worth paying close attention to it. With this being the case, it looks like it is “risk on” in general, and therefore I think what we have got here is a “buy on the dips” type of situation as well as a “buy-and-hold” situation.
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Keep in mind that the pair is sensitive to risk appetite, so pay close attention to other markets as well, because as they arise in value, that typically will help this pair in general. After that, you also have to keep an eye on the British reopening which seems to be ready to go, sending the value of the British pair higher in general. Longer-term, we probably have quite a while before the trend changes.
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