GBP/JPY Price Forecast – British Pound Continues To Grind Against Japanese You

The British pound has gone back and forth during the trading session on Thursday as we continue to see a lot of choppy behavior. That being said, the market is starting to form a larger flag pattern, and that of course is very bullish at this point.
Christopher Lewis
GBP/JPY daily chart, November 01, 2019

The British pound has gone back and forth during the trading session on Thursday, as we continue to see a lot of push and pull when it comes to this market. We are above the 200 day EMA but dancing around the 61.8% Fibonacci retracement level. Beyond that, we also have the ¥140 level which is a large, round, psychologically significant figure as well. That being the case, when you look at the flag, it measures for a potential move to the ¥149 level. This is also the 100% Fibonacci retracement level so all of this ties together quite neatly.

GBP/JPY  Video 01.11.19

Keep in mind that this pair is highly sensitive to risk appetite, so pay attention to that via stock markets and other such assets as they will give you an idea as to where the market may go next. Ultimately, this is a pair that I like buying on dips and I don’t have any interest in shorting simply because there has been such a massive relief rally in the British pound that has essentially changed the trend for the British pound against almost everything right now. With this, it’s likely that the buyers will continue to look at the possibility of dips as value that they can take advantage of, because clearly a lot of people have missed this move, and will be wanting to take advantage of what seems to be a strong impulsive trend just starting to form or a longer-term move.

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