Yahoo Finance GBP/JPY Price Forecast – British Pound Approaching Major Figure
The British pound has reached higher to the neighborhood of the ¥145 level. This is an area that I think is going to take quite a bit of effort to break above, mainly due to the fact that it is such a large, round, psychologically significant figure. Furthermore, the market is a little bit of her stretched, so it does make quite a bit of sense that maybe we pull back. That pullback should end up being a buying opportunity though, as we have seen so much strength in the British pound overall.
GBP/JPY Video 08.02.21
To the downside, I believe that somewhere near the ¥142.50 level there is probably supported, and therefore I would be a buyer of some type of bounce from that area. The alternate scenario of course is that we turn around and break to the upside again and clear the ¥145 level right away. If we do that, then it opens up the possibility of a move to the ¥147.50 level, followed by the very psychologically significant ¥150 level.
Remember, the British pound has been beaten down for quite some time, so it is difficult to get overly excited about shorting the market, because quite frankly we probably need to rally in order to get back to historic norms. Furthermore, it looks as if the Japanese yen is starting to lose some of its previous strength around the Forex world, so that should give you a little bit of a “double whammy” when it comes to trading this market. Nonetheless, markets cannot go straight up in the air forever, so a pullback still remains a real possibility.
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This article was originally posted on FX Empire
