GBP/JPY Price Forecast – Continues to Consolidate at Extreme Highs

The British pound rallied a bit during the course of the trading session on Wednesday as we continue to hang around the ¥152 level. Underneath, we have the ¥150 level as potential support. The market looks as if it is trying to work off some of the froth from the big move that we have made, so it does make quite a bit of sense that we need to go sideways in the short term. Furthermore, there has been a lot of noise in general, so I think this is a market that you want to be buying on dips, because quite frankly you cannot sell a chart that looks like this.

GBP/JPY Video 18.03.21

Looking at this chart, I believe that the ¥150 level is going to be massive support, but even if we broke down below there, I would also be interested in the ¥147.50 region, which also has shown itself to be supportive. In fact, I have no interest in shorting this market until we break down below that level at the very least, and then would have to pay close attention to the ¥145 level as it could cause potential trouble for short positions.

To the upside, if we break above the ¥152.50 level on a daily close, then I think it opens up the possibility of a move towards the ¥155 level which is my longer-term target to begin with. Remember that this pair is highly sensitive to risk appetite, so pay attention to stock indices around the world and which direction they are moving overall. Furthermore, pay close attention to the UK vaccination program, which has been much better than many other places.

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