GBP/JPY Weekly Price Forecast – British Pound Continues to Shoot Straight Up in the Year

The British pound has been on fire against the Japanese yen over the last several weeks, and this of course has not changed. At this point in time, it is very likely that we will continue to see noisy behavior, but if we can break above the ¥158.50 level, that would be an extraordinarily bullish turn of events. At that point, I would anticipate that the market goes looking towards the ¥160 level, but we have gotten so parabolic that I would be nervous about a move like that. Quite frankly, I think we desperately need some type of pullback in order to get involved in this market as it is so overdone.

GBP/JPY Video 10.01.22

The ¥155 level is a good target for support in my estimation, and I think that any pullback towards that area should offer quite a bit of interest. Ultimately, as long as that holds it looks like we will break out to the upside. If it does not, then the ¥152.50 level would more than likely be the next target. At that point, I would anticipate a significant amount of support, but it would then open up the door to the ¥150 level if we break down below it.

As you can see, we are in an uptrend longer term, and have been consolidating. However, the last three weeks have been so parabolic it does make me a bit nervous about buying. Ultimately, I think this is a market that will move right along with risk appetite, so pay attention to indices around the world, commodities, and other risk appetite related currency pairs in order to get a little bit of a “heads up.”

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