GBP/JPY Price Forecast – British pound continues to find buyersThe British pound rallied during the trading session on Wednesday, reaching above the ¥146.50 level before fading a bit coming into the North American session. Nonetheless, the market clearly has shown which direction it prefers.
The British pound has rallied during trading after good news in London came out, suggesting that the British Parliament and the prime minister may be able to talk things out. However, what I look at is the technical analysis, and I recognize that the 50 day EMA is close to the ¥145 level, which of course is a large, round, psychologically significant figure. With that in mind, it’s very likely that we are going to see an opportunity for dips to be bought yet again. Beyond that, I see a lot of support at the ¥144 level as well, so it is more of a “range” than anything else.
GBP/JPY Video 04.04.19
To the upside, I see the significant resistance that extends all the way to the psychologically important ¥150 level. A break above there could send the market towards the ¥155 level, as the bullish flag underneath measured for a move to that exact figure. With that being the case, it’s very likely that we are going to see an attempt to at least get there over the longer-term. Don’t get me wrong, it’s going to take a lot of effort to make that happen, and of course it’s almost impossible to imagine that you can simply throw money at the market and wait for it to produce profits.
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I have been a buyer of the dips recently, as we obviously have a lot of buying pressure underneath. That should continue to be the case, unless of course we break down below the ¥144 level. If we did, then we need to rethink the entire situation.
Please let us know what you think in the comments below