GBP/JPY Price Forecast – British Pound Continues Back and Forth

The British pound has initially tried to rally during the trading session on Wednesday, reaching towards the ¥137 level, and even higher. However, the market has turned around and show signs of exhaustion and therefore I think we stay within the range that we have been in for some time. The ¥135 level underneath continues to be significant support, just as the ¥138 level above is resistance. When you look at the 50 day and the 200 day EMA indicators, they are very flat and as a result it shows just how questionable the overall trend is going to be. Beyond that, we have a few things lurking in the background of course that could cause some issues.

GBP/JPY Video 05.11.20

At this point, the Brexit of course is something to pay close attention to as that will obviously move the British pound back and forth, and this pair of course has an extreme sensitivity to risk appetite in general, and without a doubt the biggest risk event when it comes to the British pound is going to be Brexit itself. We still do not have a solution, so that being said I would be very cautious in this pair unless of course you have the ability to trade shorter-term charts, perhaps back and forth in at 300 point range. All things being equal, markets hate uncertainty and we certainly have plenty of that. Noisy trading continues to be the main take away from here.

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