GBP/JPY Price Forecast – British Pound Pulls BackThe British pound fell a bit against the Japanese yen during early trading on Wednesday but was relatively quiet as you can see. The market continues to see support at the ¥143 level, and therefore it’s likely that we will continue to see a lot of back and forth in the short term.
The British pound has pulled back a bit against the Japanese yen during the trading session on Wednesday, showing signs of more malaise after the comments by Boris Johnson that he was going to force the timeline of Brexit. Ultimately though, this is a market that should find buyers in this general vicinity, so I do believe that it is only a matter of time before we bounced and go looking towards the highs again. At this point in time, the highs will more than likely be revisited given enough time, and I do think that this is a market that will eventually continue the entire uptrend going forward. Because of this, the market should continue to find plenty of buyers in this general vicinity, and then perhaps try to reach to the upside given enough time but I also recognize that area as massive resistance. We had recently broken out of the bullish flag, so I believe that we still have further to go.
GBP/JPY Video 19.12.19
My longer-term target is ¥150, but obviously there are a lot of “weak hands” that got involved after the election results. Quite frankly, this is a market that will continue to be a “buy on the dips” type of scenario going forward, but it shows just how erratic markets are right now that it only took a few words from Boris Johnson to knock this thing back 400 points. The overall trend is still to the upside, and I would anticipate it’s only a matter of time before that continues.
Please let us know what you think in the comments below