GBP/JPY Price Forecast – British Pound Bounces From Major Level

The British pound has fallen a bit against the Japanese yen initially during the trading session on Friday, reaching down towards the ¥135 level. That is an area that has been crucial, and therefore it is not a huge surprise that we have bounced from there. Ultimately, I do believe that the market goes much higher, but we may have to build a little bit of a base in this area in order to continue the uptrend in general. I do believe that we will eventually go looking towards the ¥140 level, and the 50 day EMA underneath sloping towards the ¥135 level is a good sign.

GBP/JPY Video 27.07.20

Looking at this chart, the market has been forming “higher lows” for some time, and it suggests that we are turning the longer-term attitude of this pair, which you can also make an argument for the British pound in general. That being said, I believe in buying on the dips to make quite a bit of sense in this pair. Keep in mind that the pair is also very sensitive to the overall risk appetite of traders around the world, so pay attention the stock markets. If they start to rally with any type of significance, it is likely that we will see a pretty big move over in this pair as well.

Keep in mind that the Japanese yen is considered to be a “safety currency”, and therefore traders will look to shorting this market if they feel threatened. We are currently between the 50 and the 200 day EMA indicators, and that typically means that the market is essentially “stuck” in this general vicinity.