GBP/JPY Price Forecast – British pound rallies against Yen

The British pound initially pulled back a bit during the trading session on Tuesday but found support at the ¥145 level. That’s a large, round, psychologically significant figure, so it makes sense that we would see a bit of buying pressure there. By doing so, we turned around and broke above the top of the shooting star which is a very bullish and classic buy signal. Beyond that, we also have the 200 day EMA below the hammer from the Monday session, a very bullish sign as well.

GBP/JPY  Video 27.03.19

At this point, the question then becomes whether or not we continue to go back and forth in consolidation, which means we could go as high as ¥148 and remain in this tight little area. If that’s going to be the case, you can expect a lot of volatility, but I think we’re going to continue to find a nice area from which to trade.

To the downside, I believe that the ¥144 level is going to be the bottom of the support area, and you should keep in mind that the bullish flag still measures for a move to the ¥155 level. That’s obviously going to take some time to get to, but that’s my longer-term target. As long as we can stay above the ¥144 level, I believe that plenty of buyers will return to this market and give us an opportunity to pick up bits of value every time we pull back. I have no interest in shorting this market, at least not anytime soon. Obviously I will keep you up to date here at FX Empire.

Please let us know what you think in the comments below