GBP/JPY Price Forecast – British pound continues to churn
The British pound initially rallied on Monday but ran into a bit of trouble as we continue to see sellers come back into the market. Looking at this chart, risk appetite seemed to take off a little bit in Asia, but by the time the Europeans got a hold of this parrot rolled over a bit. It should be paid attention to as it is a great barometer of risk appetite in general.
GBP/JPY Video 30.04.19
The 200 day exponential moving average has offered significant resistance, and the fact that it is sitting right at the ¥145 level should not be ignored. With that in mind, it is possible that we could break down from here. If we do, then we could have further to go, and my suspicion would be that if we break down below the ¥143.50 level, we could go much lower and possibly down to the ¥140 level.
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To the upside, the ¥145 level will offer resistance, not only due to the 200 day EMA, but we also have the 50 day EMA, along with a certain amount of psychological resistance. Looking at this chart, the bullish flag underneath should be paid attention to, but it seems as if the market is trying to break this descending triangle. If it did, I’m going to remove that bullish flag and assume that it is all but dead. Ultimately, this is a market that should go right along with global risk appetite, so pay attention to stocks and other such risk barometers to get an idea as to where this market could go.
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