GBP/JPY Price Forecast – British Pound Continues ConsolidatingThe British pound has chop around yet again during the trading session on Wednesday against the Japanese yen as we simply have nowhere to be.
The British pound has gone back and forth during the trading session on Wednesday, as the ¥135 level is now obviously an area where people are willing to step in and buy this pair. However, the ¥136 level seems to be massive resistance at the same time. In other words, we are consolidating and will more than likely need to come up with some type of solution rather soon. If and when we can get that solution, we could see a rather explosive move. I still believe that there is probably more downward pressure than up, or perhaps better put: I believe that there is much more risk out there then there is a sudden explosion of “risk appetite” coming into play. I could of course be wrong, so it is best to wait until we break out of this 100 point range to start putting money to work.
GBP/JPY Video 01.10.20
This is of course unless you are a short-term trader. By its very nature, this pair offers a nice opportunity for those willing to trade short-term charts, because it is such a well-defined little area. This is a pair that is extraordinarily volatile and does tend to move up and down with risk appetite so that something worth paying attention to it all times. I do not like the idea of putting a lot of money to work here, so simply allowing the market to tell me when to be involved is probably the best way to go with this particular pair.
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