GBP/JPY Price Forecast – British Pound Continues Grinding Against Japanese Yen

The British pound initially fell during the trading session on Wednesday but found enough support underneath the turn around and rally yet again. The British pound rallies against the Japanese yen in any “risk on” scenario.
Christopher Lewis
GBP/JPY daily chart, November 21, 2019

The British pound initially fell against the Japanese yen during the day on Wednesday but turned around to show signs of life again as we continue to grind back and forth. This is a pattern that can repeat itself over and over as we wait for some type of result to the UK elections, and of course where we are going to go next when it comes to this pair, and of course the British pound in general. At this point, the market is flagging, and it suggests that we are going to go higher given enough time.

GBP/JPY  Video 21.11.19

Looking at this chart, the 200 day EMA sits just below and it of course is something that a lot of traders will be paying attention to. The 50 day EMA now looks as if it is going to break above that 200 day EMA conforming the so-called “golden cross.” Ultimately, this is a market that could move as high as ¥149 above based upon the pole of the flag that has formed. Ultimately, the move would also coincide with going towards the 100% Fibonacci retracement level as well. Even if this market was the pullback, with the sudden surge that we have seen it’s hard to believe that the market would turn around for longer-term move. I believe at the ¥135 level we should see plenty of support as well, as it is a large, round, psychologically significant figure, and an area where we had seen resistance previously as well. Ultimately, this is a market that should continue to find buyers on value.

Please let us know what you think in the comments below

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