GBP/JPY Price Forecast – British Pound Continues To Power Against Japanese YenThe British pound has pulled back a bit during the trading session on Wednesday but turned around to show signs of strength again. Ultimately, this looks as if the market is going to go looking towards the ¥145 level.
The British pound has initially pulled back during the trading session on Wednesday but has seen strength to turn around and show positive candlestick. If we can break above the Tuesday candlestick then it’s likely that this market has the ability to go looking towards the ¥145 level. That’s an area that should cause a lot of resistance, as the market has seen that area offer a lot of supply in the past. Ultimately, this is a market that continues to be a “buy on the dips” type of scenario.
GBP/JPY Video 12.12.19
The ¥141 level underneath starts quite a bit of support that extends down to the ¥139 level, and therefore looks very unlikely to be broken. However, if we do see that area broken it’s possible that it will be due to an adverse selection result the people weren’t expecting. At that point, then we are probably going to go looking towards the ¥135 level. One thing is for sure here though, the market has shown its intention to rally going into this scenario, so the question now is going to be “How much is priced in?” Ultimately, this is a market that I have no interest in shorting unless of course the Labour Party ends up winning Parliament, but it looks very unlikely at this point. Pullbacks should be thought of as potential buying opportunities, although may not be done falling until early next week. Otherwise, we go straight up in the air in a continuation of what has been a very bullish move. Based upon the measured move of the bullish flag, I’m looking for a retracement of 100% to the ¥149 level.
Please let us know what you think in the comments below