GBP/JPY Price Forecast – British Pound Continues to Break Higher

The British pound has broken higher against the Japanese yen during trading on Thursday, as we continue to see this pair take off.
The British pound has initially pulled back during the trading session on Thursday against the Japanese yen only to turn around and show signs of strength again. By breaking above the top of the shooting star from the previous session, it does suggest that we have further to go at this point. In fact, now that we are starting to break above that resistance it is very likely that this pair will go looking towards the ¥145 level over the longer term. This is not to say that it will be easy, but that is the next major level that traders will be looking towards.

GBP/JPY Video 29.01.21
If that is the case, then we are very likely to continue to see the “risk on trade” come back into vogue. This is a market that has been merciless and its move to the upside as of late, and I am very fond of trading this particular set up as it shows not only a break of potential resistance, but a break above short-term resistance in the form of a shooting star. A lot of traders like the shooting star to start selling, and now that we have broken back above it, it is very likely that there are a lot of traders out there that are trapped.
Regardless, this is a bullish market anyway, so I think that it is only a matter of time before we continue to the upside regardless. I have no interest in shorting this pair anytime soon, as the British pound continues to attract a certain amount of buying pressure due to Brexit being behind us, and of course the potential reflation trade around the world which this pair would be symbolic out to the upside.