GBP/JPY Price Forecast – British pound screams higher

The British pound has initially pulled back during the trading session on Tuesday, but then shot higher towards the ¥145 level. By doing so we ended up slicing through the 200 day EMA as well and have now pressed against the 50 day EMA level. The ¥146 level is an area that I think is the top of the area that we are trading in right now, so I would not be surprised at all to see this market role right back over. Quite frankly, the British pound is trading on innuendo and political statements, so it’s very difficult to own the British pound in this type of environment. If that’s going to be the case, I’m simply going to stand on the sidelines but I do recognize that eventually we should get an explosive move.

GBP/JPY  Video 01.05.19

Looking at the technical analysis overall, one could make an argument for the descending triangle not kicking off yet, so maybe we have another move lower to finally break down below the ¥144 level and go to the ¥140 level. Unless we get some type of resolution with the Brexit, it’s very likely that will eventually be the move. That being said, I also have the bullish flag on my chart still, which suggests a potential move to the ¥155 level over the longer-term. Obviously though, we need to get things moving rather quickly if that’s going to be the case. We cannot get to ¥155 unless we get a Brexit resolution, something that simply must happen.

Please let us know what you think in the comments below