FXEMPIRE
All

GBP/JPY Price Forecast – British Pound Continues To Power Higher After Pullback

The British pound pulled back a bit during the trading session on Friday, but then turned around to show signs of strength again. This continues the overall “risk on” trade situation.
Christopher Lewis
GBP/JPY Price Forecast - British Pound Continues To Power Higher After Pullback

The British pound broke down a bit during the trading session on Friday but turned around to show signs of life yet again. This is a major “risk on trade” and should continue to go much higher. At this point in time, the market is likely to go looking towards the ¥145 level, the next large, round, psychologically significant figure. It is also very likely to continue to find support down at the 141 young level, and perhaps even the ¥142 level after the breakout.

GBP/JPY  Video 09.12.19

With the conservatives set to take over Parliament with more of a majority, this means that Boris Johnson will probably get his Brexit from the European Union relatively soon, and that is one thing that the market will be paying the most attention to as certainty is definitely needed in Great Britain. When you look at the overall situation, it looks as if we have not only broken out, but we have started a longer-term uptrend that will probably last for years. Remember that this pair is somewhat sensitive to risk appetite, and therefore as long as everybody’s in a good mood, this pair will rally anyway.

The ¥143 level seems to be offering a little bit of resistance, but I fully anticipate that this market will break above there based upon not only the momentum, but the fact that we have recently broken above the top of a massive bullish flag that measures for a move closer to the ¥150 level. This is probably one of my favorite trades for the next couple of months, and I have put on positions that I plan on hanging onto for a couple of years.

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