GBP/JPY Weekly Price Forecast – British Pound Finds Support Again

The British pound initially pulled back during the course of the week, slicing below the ¥150 level. However, we have seen a lot of bullish pressure jumping back into the market, and we have skyrocketed to break above the ¥151 level. At this point, this is a market that looks like it has no interest in slowing down, but I do believe that it is likely that we will continue to go sideways in the short term, to work off the massive amount of froth that has worked itself into this parabolic move.

GBP/JPY Video 29.03.21

It should be noted that the Japanese yen is getting crushed against almost everything right now, mainly due to the fact that the yields in Japan are so much lower than many other places, so therefore you have to keep an eye on bond markets worldwide. With this being the case, I think that the pair does eventually go higher, but momentum of course is something that you need to pay close attention to. The market is a bit overdone and that is really the only thing that I have against this pair right now. It is obviously going to be bullish going forward, so that pullbacks will be thought of as potential buying opportunities.

Quite frankly, I would love to see this market reached down towards the ¥145 level, but I think that is less likely to happen unless we get some type of major shock to the system as the pair is so highly sensitive to risk appetite.

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