GBP/JPY Price Forecast – British pound approaching major levelThe British pound rallied against the Japanese yen during most of the trading session on Thursday, but as you can see by the chart we have significant resistance just above.
The British pound rallied against the Japanese yen during most of the trading session but continues to struggle with the idea of ¥150 being a level. It’s not until we break above there that we are free to go much higher, but when you look at the longer-term charts, it doesn’t take much imagination to see how the buyers underneath. We have the 200 day EMA, the 50 day EMA getting ready to cross the 200 day EMA, the ¥145 level, and of course the bullish flag. Longer-term, this sets up for a nice move to the ¥155 level.
GBP/JPY Video 15.03.19
With all of that in mind, I’m a buyer of dips and have no interest in trying to short this pair. I look at pullbacks as value that can be taken advantage of, and therefore will continue to look for dips near the top of the previous downtrend channel for buying opportunities, and of course the ¥145 level. At this point, I don’t have any interest in shorting this pair unless of course the British decided to leave the European Union without a deal, and even then I think it would be somewhat limited. At that point, I think that even more value hunters would come out once the bloodbath slowed down.
If we do not get a pullback at this point, then I am a buyer above the ¥150 level which of course will be psychologically and structurally important. If we break above there, the market will continue to attract more money, which of course will create more momentum.
Please let us know what you think in the comments below