GBP/JPY Price Forecast – British Pound Pulls Back Against Japanese Yen

The British pound has pulled back significantly during the trading session on Wednesday, reaching towards the bottom of the overall consolidation area that we have been in.
Christopher Lewis
GBP/JPY daily chart, November 14, 2019

The British pound has pulled back a bit during the trading session on Wednesday, as we continue to go back and forth in general. The ¥140 level of course attracts a lot of attention, and you should keep in mind that Brexit headlines will continue to cause major issues. That being said, it should also be noted that this is a highly sensitive currency pair when it comes to risk appetite, and therefore the market should continue to see a lot of noisy moves.

GBP/JPY  Video 14.11.19

The 200 day EMA underneath should continue to be massive support, and of course we have the 50 day EMA getting ready to close in on the 200 day EMA and therefore if it can break above there it’s likely that the market should continue to go much higher. Ultimately, this is a market that is trying to break out to the upside and has recently formed a bit of a flag. At this point, it’s not necessarily a matter of if but rather when the market will break out to the upside.

With that being the case I like the idea of buying short-term pullbacks as it continues to give us an opportunity to take advantage of value. If we can get a huge “risk on” move in the markets overall, that should help this pair as well as the Japanese yen is a safety currency. That being the case, the market should continue to see a lot of “buying on the dips”, therefore should be thought of as a situation where we are looking for value. I have no interest in shorting this market.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US