GBP/JPY Weekly Price Forecast – British Pound Runs Into 200 Week EMA

The British pound has gone back and forth during the course of the week, touching the bottom of the previous weekly candlestick, before turning around and piercing the 200 week EMA. The actual body of the candlestick is green, so that of course suggests that we are more bullish than bearish, but obviously we have a significant amount of work to do to break out. If and when we can break above the ¥142.50 level and opens up the market for a potential move to the ¥145 level.

GBP/JPY

Keep in mind that this pair is highly sensitive to risk appetite, so it is important to keep in mind that the overall risk sentiment around the world is going to have a massive influence on what happens here. I do believe that the ¥140 level is starting to act as a bit of a “floor the market”, so a pullback to that area might be a nice opportunity for buyers as well.

At this juncture, I believe that looking for dips to buy probably works out best, but I would not be aggressive about anything at this point. The market certainly has a lot of upward momentum, but I believe that we have figured out he is essentially a grind at this point, not some type of major breakout just waiting to happen. With this, I like the idea of finding support on a daily chart closer to the ¥140 level that I can take advantage of. Having said that, if we break above the 200 week EMA and close above there on the daily chart, I will use that as an entry signal.