GBP/JPY Price Forecast – British Pound Breaks Higher

The British pound broke a bit higher during the trading session on Thursday, clearing the minor resistance barrier at the ¥143.50 level. Because of this, it looks as if we are ready to make a serious run at the next high, which is closer to the ¥144.25 level. Ultimately, if we can break that level the market will have made a “higher high” at least on a micro timeframe.

GBP/JPY  Video 17.01.20

The 50 day EMA recently had formed enough support to cause a bit of a bounce, and we even tested it on three separate trading sessions. Ultimately, this is a market that also tested the top of the bullish flag that had recently kicked off the move higher. Now that things have calmed down, at least for the time being, it looks as if the market is ready to continue its general upward movement. Keep in mind that this pair is highly sensitive to risk appetite around the world, and of course the Brexit situation. The closer we get to an actual agreement with the British and Europeans, the more likely we are to see the British pound strengthened as certainty reenters the marketplace. The ¥140 level will continue to offer significant support based upon the fact that it is a large, round, psychologically significant figure, and it is also the middle of that bullish flag that I mentioned. The ¥148 level offered resistance previously, and now it looks like it will be a bit of a target yet again. That doesn’t mean that all will be easy, and quite frankly I would anticipate several pullbacks along the way in order to build a bit of a position.

Please let us know what you think in the comments below