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