GBP/JPY Price Forecast – British Pound Continues Consolidation Against Yen

The British pound has gapped higher to open up the week, breaking above the ¥140 level. This of course is a bullish sign, but we have a ton of resistance just above that is going to continue to cause issues. With that being the case, the market looks very likely to go back and forth, as we simply consolidate after a massive move higher. While I wouldn’t necessarily call it a flag, it’s a similar shape. It is a rectangle on top of a significant and impulsive move higher. Beyond that, we have the 50 day EMA reaching towards the 200 day EMA, and we are going to see a “golden cross” form over the next couple of days at this rate. That is bullish longer-term, and I think at this point we are simply waiting to see whether or not the UK election results give a conservative Parliament for Boris Johnson to get out of the European Union.

GBP/JPY  Video 26.11.19

At this point in time, buying short-term pullbacks continues to work, but keep in mind that we are in a choppy area, and until we get some type of confirmation of a Tory government, it’s probably going to be a bit difficult for the market to completely take off although we have seen the positive reaction to election polls that suggest that perhaps it will happen. At this point, the market is one that I don’t have any interest in shorting, and therefore I like the idea of picking up little bits and pieces along the way on dips.

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