Yahoo Finance GBP/JPY Price Forecast – British Pound Recovers Nicely Against Japanese Yen
The British pound initially pulled back a bit during the trading session on Tuesday, reaching towards the bottom of the Monday session before bouncing. The British employment figures came out much better than anticipated and then of course is good for the British pound. There are a lot of speculators out there that are trying to figure out whether or not the Bank of England is going to cut interest rates at the end of the month. All things being equal, this is a market that is in an uptrend anyway, and that is probably the most important thing to pay attention to here.
GBP/JPY Video 22.01.20
If the market can overtake the Friday highs, that would be a very bullish sign and should send the British pound looking towards the highs again, perhaps reaching towards the ¥148 level. This market has been bullish for some time, and it looks as if it is trying to build up a little bit of a base to continue the move higher. The 50 day EMA sits just below and is rising up in, so that of course is a good sign as well. In general, I am a buyer of dips in this market, but recognize that there is a lot of noise out there just waiting to be had, so you should of course be cautious about your leverage and position size. All things being equal, I do believe that we will reach those highs again, and I believe that the 50 day EMA will continue to offer support. If it does not, then the ¥140 level underneath will be the next “floor” in the market.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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