GBP/JPY Forecast: Bullish Pressure And Buy Dips
Swap Matters
As we get paid at the end of every day to hang on to it. If we pull back from here, the ¥200 level, of course, is an area that a lot of people will be paying attention to unless it was previous resistance and now based on market memory should be supported. The 50 day EMA is racing towards the ¥200 level as well, so that all comes together to offer a significant opportunity if we do get down there.
On the other hand, we could just continue to go higher. That would make a certain amount of sense as well. But we are overbought at this point. You do have to be cautious with this type of stretched out GBP/JPY market. With that being said, I like the idea of buying short term dips as a value proposition. I don't have any interest in shorting this market.
I certainly wouldn't want to pay the swap at the end of every day for that. privilege. So really, at this point, I don't see much keeping this pair from going to the ¥205 level, other than we might be a little stretch, but I think any pullback gets bought into rather quickly. That gives you an opportunity to chase what is obviously a very strong upside. That swap at the end of every day cannot be overstated. I think continues to be one of the main drivers of where we go next.
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