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

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.