GBP/JPY Price Forecast – British pound pulls back to kick off week

The British pound pulled back initially during the trading session on Monday but found enough support underneath to turn around and it stabilized a bit. We are right at the 50 day EMA, and more importantly the ¥141 level. This is an area that has been important more than once.
Christopher Lewis
GBP/JPY daily chart, January 22, 2019

The British pound pulled back slightly during the trading session on Monday but found support just below the ¥141 level, an area that was the top of the resistance barrier that we just broke above. That being the case, the market is likely to see a lot of noise in this area, and of course the Brexit continues to be a major issue. If we can get more of a “risk on” type of attitude, that of course helps this market as well. The market is of course very worried about both the Brexit and global growth overall. I think we will continue to see a lot of noise here but it now that we are starting to show signs of support, I believe that we will make a run towards the 200 day EMA above. With that being the case, I think as long as we can stay above the ¥140 level, the buyers still have control.

GBP/JPY  Video 22.01.19

Ultimately though, I do believe there is plenty of resistance above at the 200 day EMA, and I think we will turn around once we get towards that area as we are most certainly in a negative trend. I believe that the ¥145 level is also a massive resistance, so given enough time, I think we should get a nice selling opportunity that would go along with the most recent trend. If we do break above the ¥145 level, then the longer-term trend will have changed completely to the upside.

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