GBP/JPY Price Forecast – Sooner or Later, Gravity Will Return
The British pound has gone parabolic during the trading session on Friday yet again, as we have smashed through the last vestiges of resistance. At this point, it is a simple matter of waiting for a pullback in order to get long. This is part of what can make trading so difficult, waiting for the right set up. As I woke up in North America, the market had already broken above the ¥157 level, so my job is to now look at any pullback as a sign of weakness that I can take advantage of. This is not the easiest thing to do, but experience has taught me more than once that if you simply jump in after a move like this, you are going to get hammered sooner or later.
GBP/JPY Video 18.10.21
That being said, I would love to see a pullback closer to the ¥155 level that shows a little bit of a bounce, because I would be all over it at that point. The British pound itself is breaking out overall, it quite frankly if this keeps up, it might be easier to buy the GBP/USD pair as it is just now starting to break out at the same time but from a more sustainable move.
This is clearly about the Japanese yen more than anything else though, because even the US dollar is rallying significantly against the yen. With that being said, I do think that it is probably only a matter of time before we continue to go higher and look towards the ¥160 level, but you have to recognize that it is only a matter of time before gravity comes back into the picture.
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