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GBP/JPY Price Forecast – British pound has strong Friday to close the week

By:
Christopher Lewis
Updated: Apr 12, 2019, 17:33 GMT+00:00

The British pound rallied a bit during the day on Friday to reach towards the ¥147 level before pulling back slightly. This is an area that is minor resistance, but it does look very likely that we are going to pull back in the short term to reenter the consolidation.

GBP/JPY daily chart, April 15, 2019

The British pound has broken to the upside during the trading session on Friday, reaching towards the ¥147 level. If we can break above that level significantly, then it’s very likely that we will go looking towards the ¥148 level, maybe even ¥148.50 above there. Just above that area, it’s very likely that we are going to continue to see a lot of selling pressure as well, so don’t be surprised if we can break above it right away. However, as you can see on the chart I have a bullish flag drawn, and that flag suggests that we are going to go to the ¥155 level.

GBP/JPY  Video 15.04.19

Pullbacks at this point should be supported down to the ¥144 level, and I think it’s going to be very unlikely that we break down through that level. If we do, then the market will probably “reset” closer to the ¥140 level. That’s an area that is very supportive as well, but quite frankly I think if we break down below to that area it would put a lot of pressure to the downside in this market.

If we do break above the ¥150 level, the market will explode to the upside. More than likely that would be followed by some type of Brexit deal and negotiation of an agreement. We are probably quite away from that, so patients will be needed to see that move. However at this point I think we are looking at buying on the dips.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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