Yahoo Finance GBP/JPY Price Forecast – British pound pulls back
The British pound has pulled back slightly during the trading session on Friday, as the ¥145 level has offered a bit too much in the way of resistance. That’s an area that has been very noisy for some time, so it makes sense that it would be somewhat resistive. This market continues to be bullish longer-term though, a lease based upon the bullish flag that I have marked on the chart. That bullish flag suggests that we are going to continue to see a lot of buying pressure underneath, and the measurement suggests that we could go as high as ¥155. Obviously this is going to take some time, not to mention the fact that the Brexit is going on and will cause a lot of headaches.
GBP/JPY Video 25.02.19
This pair is also a bit of a proxy for global risk appetite, so keep that in mind. If stock markets start to pull back rather distinctively, that will more than likely because this pair to fall as well. At a minimum, we will probably test the top of the flag that I have marked on the chart. I would expect to see buyers come back in that area, roughly the ¥143.50 level, and perhaps signs of stability will attract more money back into the market. If we can get good news out of the US/China trade talks, that could also send this pair higher, fulfilling the idea of the yen as a proxy for Asia.
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This article was originally posted on FX Empire
