GBP/JPY Price Forecast – British pound finding buyers

The British pound initially dipped during the trading session on Monday but seems to have found support at the crucial 200 day EMA as buyers have come back into give us a lift.
Christopher Lewis
GBP/JPY daily chart, March 26, 2019

The British pound initially fell during the trading session on Monday but found enough support at the crucial 200 day EMA to turn around and start rising again. By doing so, it looks as if there is a significant amount of demand underneath, and of course with all of the various headlines out there when it comes to the Brexit, it makes sense that we will continue to be very noisy.

GBP/JPY  Video 26.03.19

That being said, we have been in and uptrend for some time, so it makes sense that the buyers show up going forward. The ¥145 level also has offered a bit of support so it makes sense that buyers will show up there as well. That being the case, it’s very likely that we will eventually bounce and go looking to continue the overall consolidation. Remember, there was a major bullish flag that kicked this off to begin with, which has a potential move all the way to the ¥155 level. In order for that to happen though, we do have to break above the psychologically and structurally important ¥150 level. With that being the case, it’s very likely that we need to buy the dips going forward, and perhaps in little bits and pieces as we continue to range back and forth in this area.

If we break down below the candle stick from last Thursday, then we could start to see a little bit more of a selloff. Ultimately, this is a market though that looks as if it is trying to consolidate and rotate in this area, so there’s no need to fight it.

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