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.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US