GBP/JPY Price Forecast – British Pound Balls Again

The British pound has initially tried to rally against the Japanese yen during the trading session on Thursday but give back those gains to rollover yet again. It looks as if the British pound has a little bit further to go to the downside, but the ¥142.50 level will of course offer a lot of short-term support. There is more support underneath near the ¥141 level, extending down to the ¥140 level which is a large, round, psychologically significant figure. The 50 day EMA is found in that area, and it’s very likely that the indicator will cause a certain amount of support. I think a bounce in that area makes quite a bit of sense, and therefore will build up enough pressure to try to push this market to the upside.

GBP/JPY  Video 20.12.19

Looking at the overall attitude of the market, it is bullish, but this sudden snapback shows just how fickle the market is going to be. After all, this was all based on a few comments coming out of the mouth of Boris Johnson and the idea of pressing the Brexit as something that needs to be done quickly and eliminating the idea of the British asking for some type of extension. Having said that though, we are still just slightly lower from the overall move and a pullback to test the top of the flag that I have marked on the chart makes quite a bit of sense and is quite common to see in the world of technical analysis. Beyond that, the holidays are approaching and therefore trading becomes very quiet.

Please let us know what you think in the comments below