GBP/JPY Price Forecast – British pound continues to find buyers on dips

The British pound has rallied a bit during the trading session on Wednesday, using the ¥145 level as support. The support runs all the way down to the ¥144 level, so with that in mind it’s likely that the market will continue to go back and forth overall, trying to find some type of footing that it can take advantage of. Looking at this point in time, it looks as if we are struggling to go higher, but we are most certainly finding plenty of buyers underneath so that of course is much more important to pay attention to. Sometimes, it’s more important were market won’t go rather than where it will.

GBP/JPY  Video 11.04.19

To the upside I see a lot of resistance and I do think that it is going to be difficult to continue to grind higher with any type of strength, but somewhere around the ¥148.50 level is where the real story will be told. If we can break above there and finally clear the ¥150 level, then we will more than likely go looking towards ¥155, based upon the bullish flag that I have drawn on the chart. That doesn’t mean that it’s going to be easy, just that the longer-term chart suggests this.

Obviously, we need to have some type of agreement or resolution to the Brexit issue to have the British pound take off to the upside, and as soon as we get that I suspect it’s very likely that this pair is going to skyrocket. Between now and then, we are going to grind back and forth.

Please let us know what you think in the comments below