Yahoo Finance GBP/JPY Price Forecast – British Pound Bounces After Initially Falling Against Japanese Yen
The British pound initially pulled back during the trading session on Tuesday but turned around for a bit of a hammer. We see the market trading near the ¥140 level, a large, round, psychologically significant figure. This of course is also the scene of the 61.8% Fibonacci retracement level, an area that also causes quite a bit of resistance. Overall, an area that could cause some issues.
GBP/JPY Video 30.10.19
That being said, the market is sitting just above the 200 day EMA which is supportive, and now it looks likely that the area will continue to cause issues to the upside. The market is also forming a bit of a bullish flag, so it does suggest that the market is going to continue to go higher, perhaps reaching towards the ¥149 level which is the 100% Fibonacci retracement level, and the measured move from the flag itself. Because of this, it’s very likely that we will eventually find some reason to break out, and it will almost certainly be something to do with Brexit. Until then, it’s probably going to grind back and forth but it seems as if the market is celebrating the fact that a “no deal Brexit” is becoming less likely. The fact that the European Union extended the process by another 90 days is of course a bullish sign, or at least a “less bad sign.” Beyond that, if the global markets rally in general, that should send this market higher.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
GBP/JPY Price Forecast – British Pound Bounces After Initially Falling Against Japanese Yen
Natural Gas Price Prediction – Prices Surge on Cold Weather Forecast; Short Covering
AUD/USD Price Forecast – Australian Dollar To Test Resistance
Natural Gas Price Forecast – Natural Gas Markets Explode To The Upside
