GBP/JPY Price Forecast – British Pound and Bottom of Range

The British pound went back and forth during the trading session on Tuesday to show respect for the bottom of the overall risk range. Recently, the market has been trading in a range between the ¥132 level, and the ¥136 level. At this point, we are closer to the bottom than we are the top, so it is not a huge surprise to see that this market has gone back and forth in a bit of hesitation. With that being the case, it would make sense that we make another move higher, but it is going to take a significant amount of “risk on” type of behavior. At this point it is difficult to imagine that we suddenly take off to the upside but the technical suggest that is still very possible.

GBP/JPY Video 06.05.20

If we do rally though, keep in mind that the 50 day EMA above is starting to slope lower, and it does suggest that there is more downward pressure than up. At this point in time, it is likely that we will continue to see a lot of volatility more than anything else, so keep that in mind. The market will probably be rather choppy, and at this point in time it is likely that we are going to have to focus on a breakout to put any real confidence in the move. At this point, it looks likely that we are going to drop below the ¥132 level, and then sends this market down to the ¥130 level. After that, if the market were to break down below there then it is going to go down to the ¥128 level.