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GBP/JPY Price Forecast – British pound dips but find support

Christopher Lewis
Updated
The British pound fell against the Japanese yen initially during the trading session on Friday, but found support underneath the ¥145 level, as the 200 day EMA has come to the rescue.

The British pound has broken down a bit during the trading session on Friday, but then turned around to show signs of life again. That being said, you should pay attention to the fact that we are in the larger descending triangle, so it’s still the larger influence. That being said, the moving averages are in the vicinity that I follow, the 50 and the 200 day EMA, as well as the ¥145 level. With that being the case, I believe that the market will probably continue to go back and forth in this short term.

GBP/JPY  Video 06.05.19

However, if we break down below the candle stick from the Friday session I believe that it opens up the door to the ¥144 level underneath. The ¥143.50 level is the bottom of the descending triangle so if we go through there it’s likely that we will continue to follow to much lower levels, perhaps down to the ¥140 level over the longer-term. However, there’s also the possibility of breaking above the last couple of highs, slicing through the downtrend line. In that scenario, just above the ¥146 level, we would smashed through major resistance and should start looking for the ¥147 level and eventually the ¥148 level. This is obviously a “risk on” move.

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We need some type of resolution for the Brexit to continue even higher than that, based upon the bullish flag underneath. That measures for a move to the ¥155 level, but until we get that news, the ¥150 region will continue to be massive resistance.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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