GBP/JPY Price Forecast – The Dragon starts the week strong

The British pound has gapped higher to kick off the week against the Japanese yen, as we continue to see strength overall. As you can see on the chart, I have drawn a bullish flag as well, as I do believe that we are winding up for a much larger move. This will be exacerbated by some type of good news coming out of the US/China meetings this week, as the Japanese yen is of course highly influenced by that and of course this pair does tend to react with geopolitical news overall.

GBP/JPY  Video 19.02.19

That being said, the British pound is also highly sensitive to the Brexit news obviously, and that of course continues to go back and forth. Because of this, the GBP/JPY pair will continue to be very volatile, and it’s likely that we will get sudden moves in both directions. However, it does look as if the British pound has bottomed overall, and with the bullish flag shaping up, it could be a nice move just waiting to happen. In fact, we could be looking at something akin to 12 handles, which would have this market looking for ¥155 longer term. Obviously, it’s going to take a lot of work to get there but at the bullish flag does in fact kick off and proven itself to be true, that’s where the measured move ends up.

To the downside, I see a significant amount of support at the ¥140 level, and then again at the ¥137 as it was the previous support level on the down trending channel.

Please let us know what you think in the comments below