FX.co ★ GBP/JPY

A modest pullback down has occurred in the GBPJPY pair. Even if sellers manage to continue the decline, the main direction remains upward. The buying pressure is significant, and the Japanese yen, once it picks a direction, usually goes "all the way" by updating highs before possibly reversing. In this situation, the nearest target for buyers is the level of 208.00, but it could very well climb even higher, for instance, up to 210.00 - which would look even more appealing. One could, of course, try to catch pullbacks and sell in the hope of a couple of hundred points drop, but it's a risky move as such a pullback may not occur. For now, it's only upwards, and if by chance the yen starts to strengthen, I believe it will lead to a rapid and steep decline not only in the GBPJPY pair but in other yen pairs as well, and there's no guarantee of being able to catch that in time.