GBP/JPY Price Forecast – British Pound Continues to Strengthen

The British pound initially pulled back a bit against the Japanese yen during the trading session on Friday but has again seen a lot of buying pressure. At this point, the market is quite stretched, but it certainly looks as if we are going to go reaching towards the ¥150 level given enough time, and therefore I think you have to look at pullbacks as potential buying opportunities.

With that being said, I think that the ¥145 level underneath will function as a significant support level, so I would be a bit surprised if we break down below there. The question is not so much whether or not we can get to ¥150, but whether or not we will pull back between now and then?

The easiest trade to take would be some type of pullback that the market gives us an opportunity to get long again, but at this point it is probably a bit difficult to break down below the ¥147 level, where we had consolidated for a couple of days. Nonetheless, when you look at this chart is starting to look a lot like Bitcoin, which is not healthy looking offer a currency pair.

We do get these impulsive move some time to time, but at the end of the day they tend to run out of momentum rather quickly. This is my biggest concern at the moment but regardless I have no interest in shorting this pair, it is obvious that it is extraordinarily bullish and trying to “pick the top” would be a fool’s errand.