Yahoo Finance GBP/JPY Price Forecast – British pound gained slightly to kick off week
The British pound rallied a bit against the Japanese yen during trading on Monday, perhaps in a bid to express more of a “risk on” attitude, or possibly due to the fact that much of Asia was away on holiday. Either way, I do see that the 200 day EMA is just above and has acted as resistance recently. Beyond that, there is the ¥145 level above that should cause a certain amount of psychological resistance. The 200 day EMA is without a doubt something that catches a lot of attention by longer-term and technical traders.
GBP/JPY Video 05.02.19
The 50 day EMA underneath is going to offer support as well, so quite frankly between the 50 day EMA turning higher, and the couple of hammers sitting underneath suggests to me that there is a lot of buying pressure. I think that the British pound is getting a bit of a reprieve due to the idea of a delayed Brexit, and some people even harping on about the idea of a second referendum, although I think that is very unlikely. Nonetheless, the British pound is starting to see value come into the picture, at the same time the Japanese yen has softened during the trading session. That being the case, I still think that you can buy dips in this pair and recognize that if we can break the ¥145 level, we could go much higher. If we break down below the 50 day EMA, I would expect a lot of support starting at the ¥141 level.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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