GBP/JPY Price Forecast – British pound meanders against Japanese yen

The British pound went back and forth during the trading session against the Japanese yen to kick off the week, as we are trying to define and perhaps even confirm massive support just below. I think that the ¥144 level is a very serious level, and now we have the 200 day EMA pictured in black that is slicing through it. Overall, the Brexit of course continues to cause a lot of noise and therefore a lot of uncertainty when it comes to the British pound and where were going next.

GBP/JPY  Video 09.04.19

However, the technical analysis tells me that there are still plenty of buyers out there. The ¥144 level has rejected selling pressure more than once, and of course the moving averages are starting to move to the upside. Beyond that, we have a bullish flag underneath that measure for a move to the ¥155 level, which is my longer-term target. Between now and then though, we have massive resistance that extends from ¥148.50 to the ¥150 level. It’s going to take a lot of work to get above there, so these pullbacks make sense. Quite frankly, it’s probably going to need good news coming out of the Brexit in order to break above that level. Until then, we continue to churn in this area, building up the necessary inertia to make that break out. I’m not interested in selling this pair until we break down below the flag underneath.

Please let us know what you think in the comments below