GBP/JPY Price Forecast – British pound does nothing on Wednesday

The British pound went back and forth against the Japanese yen on Wednesday, essentially doing nothing as we hover around the ¥146 level. At this point though, there are couple of places to pay attention to on the chart.
Christopher Lewis
GBP/JPY daily chart, April 18, 2019

The British pound went back and forth during the trading session on Wednesday, as we don’t really have clear direction in the short term. However, it looks very likely to have to come to some type of conclusion eventually. And when that happens we will get a huge move. This pair does tend to be very volatile, so that should not be surprising at all. Overall, this is a market that I do believe has a lot of support underneath, starting at the ¥145 level, extending down to the ¥144 handle. Because of this I’ll be looking for short-term pullbacks to take advantage of, but I do recognize that a break down below the ¥144 level would be very negative.

GBP/JPY  Video 18.04.19

Looking at the longer-term chart you can see that there is a bullish flag marked on this chart, which suggests that we could go as high ¥155 over the longer-term but we obviously have a lot of hurdles to overcome. For example, the ¥148.50 level is an area that shows resistance all the way to the ¥150 level. Breaking above there could very well send this market much higher and would represent the next major push. However, we need some type of resolution in the Brexit before that happens so it’s very likely that the market will simply kind of meander in this general vicinity. That being said, I do believe that has more of an upward bias so I continue to put small positions on after short-term pullbacks.

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