GBP/JPY Price Forecast – British pound chops back and forth against Japanese yen

The British pound went back and forth during the trading session on Thursday, as we are starting to get a bit exhausted. However, you can also make a compelling argument for the fact that we have seen support as well. Ultimately, the trading this market is about being very patient.
Christopher Lewis
GBP/JPY daily chart, September 13, 2019
Close-up of 10,000 Japanese yen bills

The British pound went back and forth during the trading session on Thursday, as volatility continues to rock the markets. The ECB of course had an interest rate decision during the day and that through a lot of risk appetite around in the marketplace which of course has a significant amount of risk sensitivity this point. The 50 day EMA underneath is starting to turn higher and shows plenty of support. Ultimately, the ¥135 level above is massive resistance, and I think that might be the target in the short term if we can get some type of bullish attitude.

GBP/JPY  Video 13.09.19

At the first signs of exhaustion near the ¥135 level, I would be more than willing to start selling at this point. At that juncture, it’s also the 38.2% Fibonacci retracement level which of course will attract a certain amount of attention. I would be very interested in shorting at that area, and at the first signs of exhaustive candles such as a shooting star, I am more than willing to go short at that point. This will be especially true if we get some type of “risk off” scenario.

To the downside, the ¥130 level would be the massive support barrier that people would be aiming for, and then of course the bottom as well. One thing at this point that you could point out is that we are getting rather parabolic in the momentum is slowing down, that’s almost always a very negative sign as well.

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