GBP/JPY Weekly Price Forecast – British Pound Continues to Skyrocket Against Yen

The British pound has gone parabolic again, with this week gaining 250+ pips against the Japanese yen. That being said, we are a bit overcooked, but I do think that the market is trying to get to the ¥150 level. That is an area that will probably be very noisy to say the least, but I do think that it is probably only going to be a matter of time before we have to test it.

When you look at the longer-term chart, it is an area that a lot of people have been interested than before, and it could define the longer-term trend overall. Nonetheless, at this point momentum becomes a serious concern.

After all, markets cannot go straight up in the air forever, so it does make a certain amount of sense that we would be cautious and look for some type of pullback in order to get involved. In that scenario, I think that there will be a lot of buyers near the ¥147 level based upon the daily chart, and most certainly at the ¥145 level based upon the weekly chart.

While I do believe that we get to the ¥150 level eventually, I just have learned over the years that it is not very safe to buy a currency pair that has gone this parabolic. It is not that it cannot work, it is just that when it does not work, it tends to fail rather spectacularly. Regardless, I have no interest in shorting this currency pair, and I do believe that a lot of questions will be answered closer to the ¥150 handle.