GBP/JPY Weekly Price Forecast – Continues to Test Same Resistance Area

The British pound rallied a bit during the trading week to break above the ¥150 level. Having said that, the market is still struggling to stay above there, and I do think it makes quite a bit of sense considering that the ¥150 level is a huge round number and of course we have been a bit parabolic. I think at this point we are likely to see the market struggle and we could even get a bit of a pullback. If we do get a pull back from there, then we could go looking towards the ¥147.50 level, maybe even the ¥145 level. Quite frankly, I do think this would be healthy, as the ¥150 level has been so important.

GBP/JPY Video 08.03.21

If and when we finally do get that breakout, I believe that the British pound will go looking towards the ¥152.50 level, and then of course the ¥155 level where we have seen previous resistance. Nonetheless, this is a market that has gotten too far ahead of itself, so I do not like buying in this area at this point. Having said that, I would not be a seller either, I simply would look for some type of pullback to take advantage of. The Japanese yen is oversold against the US dollar as well, so I think what we are looking at is a scenario where we simply need to be patient to find value underneath. If we do break out to the upside before pulling back, I would be very cautious at that point as the market has gotten far ahead of itself already.

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