GBP/JPY Price Forecast – British pound pulls back against yen

The British pound broke down against the Japanese yen during the trading session on Friday, and a bit of a “risk off” scenario. That being the case, this could be a buying opportunity, especially considering that the British pound is historically cheap for most markets, so at this point I suspect that we will continue to see value hunters coming back into the market, picking up little bits and pieces and gradually accumulating the currency “on the cheap.”

GBP/JPY  Video 11.03.19

Ultimately, there is a significant amount of support all the way down to at least the ¥144 level, so at this point it’s very likely that the dips will continue to be bought on short term charts, and that is exactly what I am planning on doing, picking up a little bit here and there, building up a larger core position because I believe that based upon the bullish flag on the chart, we still have a move towards the ¥155 level. Obviously, the ¥150 level above is going to be a bit of a resistance barrier as well, so when I can get there overnight. This will take a certain amount of wherewithal to hang onto that trade, but it clearly looks like where we will go given enough time.

I have no interest in shorting this market, because the bullish flag is so prominent and obviously we have seen such an impressive move to the upside that stepping in front of it is a great way to lose money.

Please let us know what you think in the comments below