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GBP/JPY Price Forecast – British pound trying to find support

By:
Christopher Lewis
Updated: Apr 24, 2019, 16:09 UTC

The British pound went back and forth during the trading session on Wednesday, as we continue to try to find support just below. We are at a major area of support, so it would not be surprising at all to see some type of bounce from this region, but we also could see the trap door open.

GBP/JPY daily chart, April 25, 2019

The British pound went back and forth during the trading session on Wednesday, as we continue to bounce around the 200 day EMA. Beyond that, we also have the ¥145 level just above that of course attracts a lot of attention, and the support level at the ¥144 level. In general, I believe that we probably will bounce, but I am cognizant of the fact that if we break down below the ¥144 level on a daily close, that could wipe out a lot of value here.

GBP/JPY  Video 25.04.19

Looking at the chart on the longer-term time frames you can see that there is a bullish flag that I have marked, and ultimately it’s going to be difficult to ignore that, but if we do break down below the ¥144 level I will probably go ahead and erase those lines. According to the flag, we should go looking towards the ¥155 level, but I suggest that we won’t be able to see that until we get some type of resolution to the Brexit. Currently, I suggest that will be somewhere around the year 2317.

Knowing that in the back of my mind, I believe that a bounce could be a short-term buying opportunity but I also recognize that the ¥147 level has offered a lot of resistance recently. All things being equal I think this will simply be a range bound play. If we do break below though, that could open the door to ¥142.50, and then possibly even the ¥140 level.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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