GBP/JPY Price Forecast – British pound pulls back slightly against Japanese yenThe British pound pulled back slightly against the Japanese yen during trading on Friday, as we continue to see a lot of noise in general. We are pressing major resistance above, so it would make sense to suggest that perhaps a pullback is coming. If we get that pullback, it’s very likely that we will be finding buyers.
The British pound struggled a bit during the trading session on Friday as we couldn’t break out to the upside which of course is that much of a surprise. Overall, the likely attitude of the market is going to be more of a grind than anything else, but if we can break above the ¥150 level, then I think the market goes looking towards ¥155 level. Based upon the pole of the bullish flag, we should have a move towards that ¥155 level.
GBP/JPY Video 18.03.19
Looking at pullbacks, it seems as if the ¥145 level should be an area of support, so I think that buying in that area makes quite a bit of sense. We have a lot of noise out there involving the Brexit although we have seen the UK parliament vote to delay leaving, so that at least is a slightly positive situation. Because of this, I like the idea of buying the pullbacks, but recognize that we continue to see major volatility in this pair, and of course is very likely that the market will continue to see headlines come in and throw the pair around so by all means you should keep your position size relatively small, as there is high potential for damage in relatively quick amounts of time if we get the machines trading yet again.
Please let us know what you think in the comments below