GBP/JPY Price Forecast – British Pound Consolidates Yet Again

The British pound has rallied slightly during the training session as we chop around against the Japanese yen at the ¥140 level. The market is consolidating just above the 200 day EMA which is a positive sign, considering that we had seen such a massive move higher previously. As the headlines around Brexit are looking overall a bit more positive, it’s quite possible that the market can continue to go higher without pulling back drastically. At this point, the market has broken straight up in the air and now it needs to do one of two things: either pull back to find support or kill time going sideways in order for the market to digest the gains. The worst thing that could happen is the market should straight up in the air, and luckily it has not happened.

GBP/JPY  Video 04.11.19

The 200 day EMA of course offers a lot of psychological support and is something that should be paid attention to due to the fact that a lot of longer-term traders defined the trend by this indicator. The 50 day EMA looks likely to continue to go higher from here and try to cross above that level, offering a “golden cross” which is also a very bullish sign.

Looking at the flag that is trying to form, it suggests that the British pound may rise as high as ¥148 over the longer term. Obviously, we are going to need to see some type of catalyst, but one would have to think it is coming sooner rather than later as the situation with Brexit is fluid, but at least looks to be moving somewhat forward at this point.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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