GBP/JPY Price Forecast – British pound continues to fight Japanese yen

The British pound initially fell during the trading session on Thursday, but then turned around to rally towards the ¥130 level. At this point, the ¥130 level should be resistive, but not impossible to break through.
Christopher Lewis
GBP/JPY daily chart, August 23, 2019

The British pound has initially fallen during the trading session on Thursday, but then rallied to reach towards the ¥130 level. That being the case, it does look very strong and it is possible that we could break out above there. If we do, then it’s likely that we go looking towards the ¥132 range, and perhaps even the 50 day EMA above there. That 50 day EMA could cause significant resistance as well, so quite frankly at this point it’s likely that we will run into some type of exhaustion. With this, keep in mind that the British pound still has a ton of problems attached to it, so quite frankly I think it’s only a matter time before sellers come back in.

GBP/JPY  Video 23.08.19

Beyond that, let us not forget that the Japanese yen is of course a “safety currency”, so it makes sense that with all of the geopolitical concerns out there it’s likely that we will continue to see the Japanese yen be sought after by traders. At this point, I think that it’s only a matter time before we roll right back over. Simply sitting on the sidelines and waiting for signs of exhaustion will be the way going forward and given enough time I think that we will revisit the lows, because quite frankly there’s no reason to think that the entire situation has changed drastically. If anything else, it’s very likely that it has gotten even murkier, which means that it’s only a matter of time before the sellers come in and start pushing this thing back down.

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