GBP/JPY Weekly Price Forecast – British Pound Skyrockets Against Japanese Yen
The British pound has rallied quite significantly against the Japanese yen during the course of the trading week, showing signs of extreme momentum. Because of this, the market looks as if it is going to continue going higher over the longer term, and at this point in time it is all but impossible to short this pair. That being said, the market is likely to continue seeing the ¥155 level as an important level to pay attention to, as it should now offer a bit of a floor in the market.
GBP/JPY Video 18.10.21
Longer-term, it is very likely that we will go looking towards the ¥160 level, which is an area that had seen significant selling on the monthly chart. Breaking above that then allows this market to rip much higher. To the downside, breaking down below the ¥155 level of course is a negative turn of events, but not enough to have me shorting the market. The ¥152.50 level is sitting just below there and offering support as well. With all of that, I think it would only be a matter of time before value hunters come back in. The Japanese yen is getting hammered against almost everything, so the British pound of course will be any different.
I do believe at this point in time that the British pound is one of the better currencies to play against the Japanese yen, simply because the British pound is starting to try to break out against multiple currencies, not just this one. The size of the candlestick alone tells you that we have plenty of momentum in this market.
For a look at all of today’s economic events, check out our economic calendar.