Yahoo Finance GBP/JPY Price Forecast – British Pound Continues to Push Higher
The British pound has rallied a bit during the course of the trading session on Monday to kick off the week, showing signs of life yet again. At this point time, the market is likely to see more of a “buy on the dips” type of mentality. After all, this is a market that continues to rip to the upside, and with that being the case, market is likely to continue to see plenty of value hunting. With the ¥155 level underneath offering psychological support, and the fact that it is the top of the most recent push to the upside, it makes quite a bit of sense that we would see this market move right along that area as it will have a certain amount of “market memory” attached to it.
GBP/JPY Video 26.10.21
The market is also highly sensitive to risk appetite, as the Japanese yen is considered to be a major “safety currency.” The market will continue to see a lot of upward momentum as long as we have more of a “risk on” attitude, and of course the exact opposite is true. Even if we were to break down below the ¥155 level, I think there is significant support just waiting at the ¥152.50 level as well. Although we desperately need some type of pullback, at the end of the day, I just do not have any desire to try to short this market. After the massive explosion to the upside, I think this is a market that will continue to find plenty of momentum over the longer term. Longer-term, I suspect that we revisit the highs again.
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This article was originally posted on FX Empire
