GBP/JPY Weekly Price Forecast – British Pound Choppy Against Japanese Yen

The British pound has gone back and forth during the course of the week, testing the ¥140 level, and when you look at the daily chart, it is forming a pennant or symmetrical triangle, depending on how you look at it.
Christopher Lewis
GBP/JPY weekly chart, November 11, 2019

The British pound has gone back and forth during the week, showing the ¥140 level as major importance in the market, and if we can break above there it could free the British pound to continue going much higher, perhaps to the ¥148 level. That being said, this is a market that is very volatile and will continue to be at the mercy of not only Brexit headlines, but the US/China trade headlines as well, as this pair is highly sensitive to risk appetite around the world.

GBP/JPY  Video 11.11.19

Ultimately, this is a market that has rallied far too far to continue going higher without some type of consolidation. We have that now, so it’s only a matter of time before we do rally, because quite frankly we are getting very close to more “risk on” type of situation. The 50 week EMA is underneath and starting to curl higher, so that should help as well. Ultimately, this is a market that is also testing the 61.8% Fibonacci retracement level at the same level, so it makes sense that we will see a move sooner rather than later. Ultimately, if the market was to make a significant move it should bring fresh money into the market, especially if it’s to the upside as the British pound is historically cheap after the Brexit vote, and at this point Armageddon has been price then. At this point, it’s very likely that value hunters will continue to try to build a bit of a base as headlines are getting slightly better.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US