GBP/JPY Price Forecast – British pound rallies against Japanese yen

The British pound rallied a bit during the trading session on Wednesday but did give back some of the gains. However, when I look at this chart it looks very much like a bullish flag is being formed. Because of this, I believe that we will probably break out to the upside given enough time. I recognize that the 200 day EMA is just above, and that of course is going to cause some issues. However, I do believe that it’s only a matter of time before we get a reason for the British pound to move. The British pound of course will be highly temperamental due to the Brexit headlines.

GBP/JPY Video 14.02.19

On short-term pullbacks, I believe that there will be buying opportunities, especially with the ¥140 level offering significant support. I believe at this point the market will be very volatile, so I would be cautious about putting too much money into work right away. I do think that the British pound has bottomed longer-term, unless of course we get some type of “no deal Brexit.” At this point, traders are starting to focus on the idea that we will either get some type of agreement, or we will have at the very least a delay of the movement.

It’s basically a huge game of chicken right now, but it looks as if the buyers are starting to take over, and I do believe that the British pound has been oversold for some time, and it is historically cheap. I believe value hunters continue to jump in and pick up this market on these dips.

Please let us know what you think in the comments below