GBP/JPY Weekly Price Forecast – British Pound Breaks Major Resistance

The British pound has broken above the ¥155 level, an area that has been significant resistance in the past. That is a good sign, but we still have some work to do to get through all of the noise just above the ¥155 level, but at this point in time it is very likely that we go looking towards the ¥160 level given enough time, as it is the next major resistance barrier on the longer-term charts.

GBP/JPY Video 31.05.21

This pair had previously been a bit over stretched, but we did spend a bit of time working off some of the froth, so it does give us a little bit of an impetus to continue going higher. This will be especially true if the British pound can finally break above the 1.42 level against the US dollar. That will put more momentum into this pair as it would not just be the Japanese yen pushing it higher at this point.

To the downside I believe that the ¥150 level is massive support, so breaking down below that level would then put a serious dent in the uptrend and could have this pair dropping rather drastically. I do not see that happening, but it is something to keep an eye on just in case. With this being the case, the market is likely to see this as an opportunity to buy on the dip if we get some type of drop. Ultimately, this is a pair that will continue to move right along with the risk appetite of traders globally, which seems to be picking up over the longer term as the reopening trade propels everything.

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