GBP/JPY Price Forecast – British Pound Continues To Find Buyers Against Yen

The British pound has rallied slightly during the trading session on Tuesday, as the market is approaching the 50 day EMA yet again. That being said, there are still a lot of headwinds above.
Christopher Lewis
GBP/JPY Price Forecast - British Pound Continues To Find Buyers Against Yen

The British pound rallied a bit during the trading session on Tuesday again, reaching towards the 50 day EMA. Ultimately, this is an area that has attract a lot of attention, and now that we are below that level it does suggest that there is a little bit of resistance that will come into play. That being said, I don’t have any interest in trying to short this pair, because there is a significant amount of support just below. All things being equal, this pair will move on a “risk on/risk off” type of scenario, but it currently seems as if there are a lot of moving pieces right now that could throw the spear around.

GBP/JPY  Video 12.02.20

To the downside I would anticipate that the 1.40 level should come into play, offering a significant amount of support. That support extends down to at least the ¥139 level, so I do not believe that it makes much sense to be a seller until we break through there. In the meantime, I believe that short-term pullbacks will continue to be buying opportunities as equity markets are starting to turn around. That being said, there is a lot of noise above at the ¥143 level to chew through, and if we were to break above there then the ¥144 level would be next. After that, the ¥145 level would be the next major level. Ultimately, this is a pair that seems as if it is trying to form a little bit of a base in this area, but I also recognize that there is a lot of global noise out there.

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