Yahoo Finance GBP/JPY Price Forecast – British pound pulls back from major level
The British pound pulled back a bit to kick off the week, as Monday was a bit negative. Obviously, we have gotten a bit ahead of ourselves after this parabolic move, but the one thing that I do see is a lot of support underneath. Beyond that, there is the expectation that the Brexit will be delayed, and if that’s going to be the case it’s likely that it will continue to benefit the British pound. That could have this market breaking above the ¥145 level, but beyond that there is a major downtrend line above that is the top of the channel that we have been falling in.
GBP/JPY Video 29.01.19
If you look at the trajectory of the recent trading, we have gone straight up after falling rather hard. We do have some voting in the UK parliament this week, and that could cause major volatility in this pair. Beyond that, it is sensitive to global risks, which there seems to be plenty of at the moment. Remember, the Japanese yen is considered to be a safety currency. Ultimately, I believe that the 200 day EMA is causing most of the resistance right now, and that if we do pull back the red 50 day EMA that is now starting to turn higher could cause support. The fact that we have formed a “V pattern” suggests that there is a lot of support below current levels.
This article was originally posted on FX Empire
