GBP/JPY Weekly Price Forecast – Pound Reaching Towards Major Milestone

The British pound has initially pulled back against the Japanese yen during the course of the week, but then shot back up towards the ¥145 level. This is not a huge surprise, considering that we are in a strong uptrend and of course the British pound has recently broken out against the US dollar. With that being the case, it will probably drag this pair higher given enough time. Furthermore, you need to pay attention to risk appetite, because the attitude of traders will have a lot to do with where this pair goes and whether or not it can break out above this major barrier.

GBP/JPY Video 15.02.21

The 200 week EMA is sitting at the ¥142.50 level, and it suggests that we are going to continue going higher over the longer term. If we do pull back, we could find plenty of buyers in that general vicinity. To the upside, if we can break above the ¥145 level, then the market is likely to go looking towards the ¥147.50 level. After that, the market then goes looking towards the ¥150 level, and I think that is probably what we see eventually.

Keep in mind that we continue to see a lot of questions about the global economy, so that could cause some issues. However, the UK economy has been locked down and people have been being vaccinated much quicker there than many of the other major economies around the world, so currency traders have been rewarding the British pound by jumping in and adopting a bullish attitude. As long as that is the case, I think we continue to go higher.

For a look at all of today’s economic events, check out our economic calendar.