GBP/JPY Price Forecast – British Pound Find Buyers On A Pullback

The British pound initially pulled back a bit during the trading session on Wednesday, showing signs of weakness but we have again found the ¥142.50 level to be supportive as it has been over the last couple of days. In fact, we are knocking on the door break out above the ¥143.50, which would be a very bullish sign. At this point, the market has been very choppy and then should continue to grind higher. At this point, I think that the market will go looking towards the ¥145 level, and then eventually the ¥147.50 level. Underneath, the 50 day EMA has offered quite a bit of support near the ¥141 level.

GBP/JPY  Video 16.01.20

What’s even more significant is that a pullback has reached towards the bullish flag that had previously been so important, and therefore there are a lot of orders in the body of the flag that should continue to show plenty of signs of support. Ultimately, this is a market that might be a bit choppy and difficult to deal with but if you are cautious and have a reasonable position size, you can add as we go higher. In other words, you can form a bit of a core position, and then simply get bigger as the market works out in your favor. I have no interest in shorting this pair, it has shown quite a bit of resiliency. That being the case, I think that this will move right along with risk appetite more than anything else.

Please let us know what you think in the comments below