GBP/JPY Weekly Price Forecast – British pound has good week

The British pound rallied a bit during the trading week against the Japanese yen, using the ¥145 region as support and wiping out all of the losses from the previous week.
Christopher Lewis
GBP/JPY weekly chart, March 18, 2019

The British pound rallied against the Japanese yen during the week, closing out towards the highs of the candle stick. We have wiped out most of the losses from the previous week, so it’s very obvious that the market is trying to break out to the upside. On the daily chart, we have recently formed a bullish flag that I have marked here, showing that we are more than likely going to go looking towards ¥155 given enough time.

GBP/JPY  Video 18.03.19

In the near term, I anticipate the occasional pullback but the UK parliament voting to delayed Brexit certainly has help the British pound overall, and I think we will continue to see that reflected here in this chart. Once we can break the ¥150 level I suspect LB fresh new money coming back into the marketplace, pushing it to the upside. I believe in hunting for value, and I do think that we will get it occasionally, as the random headline will push price down. I have no interest in shorting the British pound anymore, I believe that we have change the trend completely as we broke above the downtrend line in the channel.

Looking at this chart, it’s very likely that we will continue to see lots of volatility but I do think that ultimately the British pound is in the process of forming some type of bottoming pattern against most currencies around the world, and therefore we will eventually see the “melt up” that I anticipate. That doesn’t mean we will get the sudden and sharp corrections from time to time, which is why I am an advocate of building up a position slowly.

Please let us know what you think in the comments below

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