GBP/JPY Price Forecast – British Pound Breaks ¥155

The British pound has broken above the ¥155 level during the course of the week, and what would have been an obvious parabolic move. Now that we have cleared this area, it does suggest that this pair is going to continue to go much higher, although a little bit of a pullback would make a certain amount of sense. The ¥152.50 level underneath should be the floor in the market at the moment, but quite frankly I might be a bit surprised if we pull back that far. Nonetheless, keep in mind that this pair is highly sensitive to risk appetite so that will have its say as to what we do.

GBP/JPY Video 03.01.22

If we decide to suddenly take off to the upside again, then reaching the highs would almost be a given at this point. Nonetheless, it will be interesting to see how this plays out and a lot of it will probably have to do with the Japanese yen in general. Pay close attention to how JPY is behaving against most other currencies, because that may make this thing moving to the upside rather quickly. The first week or so of January mining to be a little bit of a hesitation, but by the time we get through the first week, traders will have their books build back up, and therefore it is likely that we would see a little bit more clarity later in the week than in the beginning. The pair has had a very parabolic run, so I do think that a little bit of a pullback is probably quite welcome for most people, even those who are wanting to get long.

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