GBP/JPY Price Forecast – British pound pulls back against Japanese yen

The British pound fell during the trading session on Tuesday to reach down towards the ¥145 level. Looking at this chart, it’s obvious that the ¥145 level is important from a large, round, psychologically significant level, plus we also have the 200 day EMA just below. Beyond that, the ¥144 level is the bottom of a range of support. At this point, if we were to break down below the ¥144 level, the market will then go looking towards the ¥142.50 level. However, even with all of the noise that’s not my base case scenario.

GBP/JPY  Video 03.04.19

Looking at this chart, I believe that we will continue to see a lot of choppiness, and perhaps consolidation. There is still the bullish flag that I am looking at on the chart, which measures for a move towards the ¥155 level. Obviously, the ¥150 level needs to be broken initially, which has been very difficult to break out of. Once we do though, that should send the market into a bit of “overdrive”, as fresh money will come into the marketplace. In the short term, I believe that we continue to go back and forth between the ¥144 level on the bottom, and the ¥148.50 level on the top. We need some type of resolution with the Brexit to get that bigger break out, and essentially at this point we are simply churning the market trying to build up enough momentum to finally make that move. Until then, we play the market that is offered us.

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