GBP/JPY Price Forecast – Will We See This Pair Ever Pullback?

The British pound has rallied again during the course of the trading session on Tuesday to continue the parabolic move that we have seen over the last couple of weeks. Quite frankly, if you are not already involved in this market you are stuck, because Murphy’s Law dictates that as soon as you try to get involved, you will have the market pull back against you. Looking at this, I believe that the market is more than likely going to continue higher over the longer term. Pullbacks at this point will almost certainly be bought into right away, so therefore the pullback might be a bit shallow. I think that the ¥155 level is now the “floor the market”, as it has been a major resistance barrier previously.

GBP/JPY Video 20.10.21

“Market memory” will of course attract a certain amount of attention, as what previously had been the ceiling will then become the floor. I think all things been equal, the market is likely to see a lot of back and forth, but as long as we continue to see the Japanese yen gets sold overall, I think this will continue to find the upside. I believe that we are still going to go looking towards the ¥160 level, and perhaps even further than that. This is a massive breakout and short squeeze from what I can see, and now the biggest challenge is going to be finding an entry point it makes sense. I would love a pullback towards the ¥155 level, but I do not even know that will get that far.

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