GBP/JPY Price Forecast – British pound continues to grind higherThe British pound rallied a bit after initially pulling back on Monday against the Japanese yen. That being said we are starting to get close to resistance, so it wouldn’t be surprising at all to see this market pull back from here and look for buyers underneath.
The British pound initially pulled back a bit during the trading session on Monday, reaching towards significant resistance that we have seen over the last several weeks. At this point though, we have been grinding higher overall, and of course we have a major support level underneath that people will be paying attention to. That support level, currently at the ¥144 level, which extends to the ¥145 level, and therefore it would make a lot of sense to see buyers come in and pick up value if they get the opportunity. That clearly has been with the market has seen as of late.
GBP/JPY Video 16.04.19
Beyond that, we have the 50 and the 200 day EMA just below, so there is a technical reason for that to be supportive as well. To the upside, we also have the ¥148.50 level which should offer resistance that extends all the way to the ¥150 level. Obviously, the ¥150 level will have a certain amount of psychological importance attached to it.
However, when you look at the chart underneath, there is a clear bullish flag that has formed and therefore it’s very likely that a lot of technical traders are paying attention to that. The measurement from that flag suggests that we could go as high as ¥155, but obviously that’s going to take a lot of effort to get there. Beyond that, we probably need some type of major announcement coming out of the Brexit to make that potential move happened. In the short term, it’s probably a “buying on the dips” type of market.
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