GBP/JPY Price Forecast – British pound shows resiliency against yen

The British pound bounced a bit during the trading session on Tuesday, as we continue to see resiliency and the British pound. The 50 day EMA has been important, and the last couple of days have shown that yet again. I think that we could probably squeeze towards the 200 day EMA, which is closer to the ¥144 level. This is a market that should continue to see a lot of choppiness, but ultimately I do think that the buyers are starting to step in and pick up the British pound because it is starting to get historically cheap again.

GBP/JPY Video 13.02.19

At this point, keep in mind that this market is also highly sensitive to risk appetite in general, so keep in mind that if the stock markets melt down suddenly, that could also weigh upon this market. However, I believe that the ¥140 level is going to be massive support, so I don’t expect to see this market break down below there. If we do, that would change a lot of things but right now I think we are going to see a lot of back-and-forth action, with an overall slant towards the upside as the pair has shown such resiliency lately and has formed what could be thought of as a bullish flag as well. Either way, I do think that eventually we are going to see an explosive move to the upside, especially if we get some type of resolution to the Brexit, or perhaps a delay to the actual act of delaying the Brexit.

Please let us know what you think in the comments below