U.S. Markets closed

GBP/JPY Price Forecast – British Pound Recovers Against Yen

Christopher Lewis

The British pound has rallied significantly during the trading session on Thursday, breaking above the top of the consolidation from the previous candlestick. At this point, it looks as if we are going to see a return of British pound strength, based upon the fact that we have bounced off the top of the bullish flag. Ultimately, this is a market that should continue to see a lot of volatility, but all things being equal it looks as if we are going to get a recovery and therefore I like the idea of buying the British pound against the Japanese yen, knowing full well that it is going to be an area that is going to be very noisy. Ultimately, this is a market that has been very bullish for some time, and the turnaround was probably just as overly aggressive as the run up into the election was.

GBP/JPY  Video 27.12.19

Looking at the marketplace though, it looks as if it is going to be a steady grind higher and therefore, I like the idea of the market offering value on short-term dips that you can take advantage of and hang on to. The 150 and level is my longer-term target, while I have the ¥140 level underneath as massive support that extends down to the ¥139 level. If we were to break down below that level, then it’s likely that the market will probably reach towards the ¥136 level. At this point, I like the idea of looking for “cheap British pounds.”

Please let us know what you think in the comments below

This article was originally posted on FX Empire