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GBP/JPY Price Forecast – British Pound Breaks Highs

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·2-min read
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The British pound has skyrocketed during the trading session on Monday to break above the recent highs and clear the ¥153.50 level. This is a major breakout, and it should open up the possibility of a move towards the towards the ¥155 level in the short term. Longer-term, you could make an argument for a bit of a bullish flag, which opens up an even bigger move in theory.

GBP/JPY Video 11.05.21

Nonetheless, this is a market that looks like it has plenty of support near the ¥150 level, which of course is a large, round, psychologically significant figure, and an area where the 50 day EMA sits. All things being equal, this is a market that I think will continue to see buyers on dips, and I do think that it is only a matter of time before we not only reach towards the ¥155 level, but perhaps even higher than that. If we break that level, then it is likely to go towards the ¥160 level.

Keep in mind that this pair is highly sensitive to risk appetite, so keep an eye on various markets around the world. Nonetheless, it certainly looks as if we are ready to take off to the upside, so I think it is only a matter of time before we climb even higher. All things being equal this is a market that simply will not fall anytime soon, but if we did break down below the 50 day EMA, then it is possible that we can go looking towards the ¥145 level, where the 200 day EMA is starting to reach towards and certainly would attract a lot of attention.

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

This article was originally posted on FX Empire

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