GBP/JPY Price Forecast – British pound falls to supportThe British pound fell during trading on Thursday, reaching towards the ¥145 level. This is an area that is going to be crucial for several different reasons, so it’s likely that there is a significant amount of support in this general vicinity.
The British pound fell during trading on Thursday, reaching down to the ¥145 level. This is an area that of course has a certain amount of psychological importance, and of course structural as you can see to the left on the chart. Beyond that, we also have the 50 day EMA getting ready to cross above the 200 day EMA, which is what is known as the “golden cross.” Because of this, longer-term traders will be looking to get involved somewhere in this area as well, so quite frankly all we need to see is a bit of a bounce to get traders involved in what has been an obvious move to the upside.
GBP/JPY Video 22.03.19
When we look at the longer-term charts, it’s easy to see that there is a bullish flag that has kicked off this move, and it’s likely that we will see a move to the ¥155 level based upon the measurement of that flag. Because of this, it’s very likely that we will continue to see buyers on dips, and quite frankly a lot of the drama around the British pound will cause buying opportunities at historically low levels.
Remember that this pair is sensitive to risk appetite as well, so if we get a bit of a boost in the stock markets globally, then it’s likely that this pair will rally right along with it. Ultimately, this is a market that has offered a little bit of a pullback here, so it’s likely that buyers will take advantage of these cheap values.
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