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

The British pound pulled back a bit during the day on Tuesday, as we had formed a shooting star during the Monday session. While this is a negative turn of events the reality is that we are still very much in a consolidation area with an upward tilt longer term.
Christopher Lewis
GBP/JPY daily chart, April 17, 2019

The British pound formed a shooting star on Monday, and on Tuesday we broke down below the bottom of it. While this is a short-term negative sign I believe that there is plenty of support below at the ¥145 level, extending all the way down to the ¥144 level. Overall, I think there is a lot of support in that area as we have seen, and beyond that we have the 200 day EMA acting as support. That being the case I’m looking for the market to bounce from that area and as I am bullish I believe that the market will find plenty of buyers in that area.

GBP/JPY  Video 17.04.19

When you look at the longer-term chart, you can see that there is a bullish flag that I have marked. That bullish flag should continue to attract a lot of attention and it does measure for a move to the ¥155 level. However, between here in that area we have a lot of resistance near the ¥150 level, which starts at roughly ¥148.50. With that being the case it’s very likely that we are going to continue to see choppiness and consolidation as we try to build up the necessary momentum to make it to that level.

In short, I believe that buying the dips will be the best way to play this market and I do fully anticipate that the market will break out eventually. That being said, I recognize that we have some work to get it to happen, and we probably need good headlines out of the Brexit.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.