GBP/JPY Price Forecast – British Pound Continues To Press Resistance

The British pound continues to show signs of underlying demand, as the market has been grinding around the ¥140 level for some time. After the initial surge higher, it now looks as if the market is prepared to digest those gains.
Christopher Lewis
GBP/JPY daily chart, November 06, 2019

The British pound has gone back and forth against the Japanese yen over the last couple of weeks, simply digesting gains from the massive shot higher that we had seen previously. The market is now above the 200 day EMA, and therefore it’s likely that we will continue to see this market go higher eventually. If we can make a fresh, new high, that would lead to a run towards the 100% Fibonacci retracement level above, which is the ¥149 level.

GBP/JPY  Video 06.11.19

Currently, the 200 day EMA is offering massive support, and it should continue to attract a lot of attention as per usual. Ultimately, this is a market that will find a reason to go higher, based upon the fact that it’s now one of the worst kept secrets in the world, the British pound has bottomed. This doesn’t mean that we can’t have a wicked pullback, but at this point it looks very likely that short-term pullback should be thought of as buying opportunities. Ultimately, this is a market that should feature a lot of “buying on the dips” going forward, and of course value hunting. That being said, if we were to break down below the 200 day EMA, it’s likely that the market goes down towards the ¥135 level which would be massive structurally as well and could be a great place to pick up even more value. Currently, I have no interest in shorting this pair even though I do recognize that it is a bit overbought.

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