Yahoo Finance GBP/JPY Weekly Price Forecast – British pound show strength for the week
The British pound rallied during the week, reaching towards the ¥145 level. We broke the top of a major bullish flag, so that of course is a very good sign. This is a market that looks like it has bottomed, although there is a lot of noise above that is going to continue to cause major issues. That being the case, expect pullbacks but longer-term traders will probably be looking to pick up dips as they should continue to offer value based upon what we have seen.
GBP/JPY Video 25.02.19
Keep in mind that the GBP/JPY pair is very sensitive to geopolitical and global growth issues, and that being the case it is likely that there are a lot of headlines out there that will continue to throw this market around. Obviously, the most obvious one will be the Brexit headlines, but we also have the US/China trade negotiations going on that will have a massive influence on global growth and risk appetite overall. That by extension will have a lot of influence on what happens in this market.
At this point, I believe that the ¥140 level is going to act as a bit of a “floor” in this market, and that’s assuming that we even do get down there. At this point, it looks as if breaking above the ¥145 level is going to take a lot of effort, but once we do we could really start to take off to the upside although we do have a downtrend line to deal with as well. In other words, expect a lot of volatility but it does favor the upside 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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