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

The British pound pulled back a bit against the Japanese yen during the trading session on Thursday, as we continue to see a lot of volatility in this pair. Ultimately, this is a market that is very risk sensitive, so keep in mind that it will ebb and flow with other markets.
Christopher Lewis
GBP/JPY Price Forecast - British Pound Pulls Back Against Japanese Yen

The British pound has pulled back a bit against the Japanese yen during the trading session on Thursday, as the ¥145 level has offered a bit of resistance. Ultimately though, we are still very much in an uptrend and it is probably only a matter of time before the buyers come back and start to grind higher. The 50 day EMA is starting to reach towards that same general vicinity, although it’s got a few days to go before it comes into play. Signs of support and a bounce will more than likely end up being the best way going forward, but ultimately the market is in an uptrend, so it’s very likely that the market should go looking towards the ¥148 level.

GBP/JPY  Video 24.01.20

At this point, as long as we can stay above the 50 day EMA I am bullish of this market and I do think that ultimately, we will continue to find plenty of buyers on these dips, mainly because the British pound has been much more resilient than thought in the past. The Japanese yen of course is a “safety currency” so therefore as long as there are buyers out there willing to take on risk, the market should continue to go higher. However, if we get some type of financial shot, or geopolitical shot, this market could pull back. And then of course, there are all things Brexit related. With this, I remain bullish, but I also recognize that the occasional pullback will be necessary to produce value.

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