GBP/JPY Price Forecast – British pound finding buyers underneath

The British pound has pulled back to kick off the Monday trading session, but only just so. It seems as if the ¥147.50 level is offering a significant amount of support, and it could catch a lot of attention. After all, the Thursday candle stick last week surged to this level, and it appears that we are simply trying to build up the proper momentum to finally break above the psychologically and structurally important ¥150 level. At this point, I continue to focus on the bullish flag that we had recently broken out of, that suggests that a move to the ¥155 level over the longer-term. That being said, ¥150 of course will cause significant resistance, so pullbacks should be thought of as an attempt to build up the necessary momentum to break out.

GBP/JPY  Video 19.03.19

To the downside, I am watching the ¥145 level, an area that should continue to cause a significant amount of noise. In fact, we’ve recently seen the so-called “golden cross”, which is a very bullish sign. Ultimately, this is a market that should have plenty of buyers underneath, and the fact that we have seen a couple of impulsive white candles on the chart tells me that there are plenty of value hunters down there looking to pick up the British pound, despite all of the Brexit headlines. Once we break above the ¥150 level, the likelihood of a shot higher being rather strong is pretty high. Think of it as a beach ball being held underwater, once you let go it pops higher.

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