GBP/JPY Price Forecast – The British Pound Has Bounced From Major Support

The British pound has rallied a bit during the course of the trading session on as we continue to look at the ¥155 level as a major support level and an area where we had broken out of recently to show signs of strength. At this point, it is likely that we should continue to see a lot of choppy but upward behavior, due to the fact that the United Kingdom is opening up and of course the Japanese yen itself is rather weak in this environment. Beyond that, the pair is highly sensitive to risk appetite in general, so I look at this as a proxy for global risk.

GBP/JPY Video 03.06.21

If we were to break down below the ¥155 level, then it is possible we could go down towards the ¥153.50 level. The ¥153.50 level is an area where we launched from previously, so there should be quite a bit of support and buying in that region one would think. If we were to break down below there, then obviously that would be a very negative turn of events but right now it certainly looks as if the market is continuing to see reasons to go higher, so at this point in time I continue to look to the upside.

Longer-term, I fully anticipate that this market would go looking towards the ¥160 level, which of course is a large, round, psychologically significant figure in and of itself. Expect volatility, especially with the jobs number coming on Friday, but at the end of the day we are in an uptrend.

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