GBP/JPY Price Forecast – British Pound Continues Range Bound Trading

While the last couple of days have shown signs of life in the British pound against the Japanese yen, the reality is that we have not broken out quite yet. Because of this, it is very possible that we may need to pullback a little bit going into the weekend, something that would make sense as traders would be a bit concerned about holding risk for two days while nothing can be done about positions. After all, there are plenty of headlines out there that could spook the markets, so therefore it would make quite a bit of sense that the pair would perhaps go reaching back towards the middle of the hammer that formed during the trading session on Wednesday.

GBP/JPY Video 01.05.20

Having said that, if the market can break above the ¥134 level then I believe that we are going to go looking towards the ¥136 level over the longer term. Ultimately, this is a market that will react to the latest headline, as the Japanese yen is considered to be a “safety currency” while the British pound continues to attract speculators if they feel like things are going to suddenly get better. That being said, it is highly likely that the market will continue to see volatility either way, as the latest headlines continue to swat the market back and forth. It is because of the typical volatility of this pair and the fact that the market has so much focus on that position size should be relatively small.