GBP/JPY Price Forecast – British Pound Continues To Consolidate

The British pound continues to consolidate in general against the Japanese yen as we await some type of movement when it comes to Brexit. At this point, the market continues to dance around the ¥140 level, an area that attracts a lot of attention.
Christopher Lewis
GBP/JPY daily chart, November 20, 2019

The British pound has shown signs of consolidation again during the day on Wednesday, as we are simply going sideways. Overall, it looks as if we are forming some type of bullish flag or pennant, and you can see the same thing with the GBP/USD pair, the GBP/NZD pair, and many others. At this point, the market is finding a lot of support underneath at the 200 day EMA as well, so pay attention to that as well. The 50 day EMA is starting to reach towards that level, and at this point it’s likely that we will continue to go forward and to the upside as soon as we get some type of good news involving Brexit.

GBP/JPY  Video 20.11.19

The so-called “golden cross” will bring longer-term technical traders into the fold as well, so it’s worth paying attention to. I believe at this point if we do break above the ¥141.50 level on a daily close it will probably signal that this pair is ready to go to the 100% Fibonacci retracement level which is closer to the ¥148.50 level. At this point, pullbacks continue to offer buying opportunities unless of course there is some type of massive “risk off” scenario globally that has people buying the Japanese yen hand over fist. In general, I like this market to the upside, but I recognize that a certain amount of patience will be needed in order to take advantage of the potential move. Remember, the market moves on its own timeframe, not yours.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.