GBP/JPY Price Forecast – British Pound Continues to Find Support at Same Indicator
The British pound pulled back a bit against the trading session on Thursday but has found the 50 day EMA to be supportive enough to turn things around again. By forming the candlestick that we are, it shows that we continue to dance around the ¥135 region in order to find some type of footing. I think at this point it is going to be difficult for this market to break out, especially as the 200 day EMA sits just above. Having said that, the markets are in more or less a “risk on” type of mood in general, so that could be one reason why this market rallies.
GBP/JPY Video 17.07.20
Further exacerbating the market situation though is that the Japanese yen itself has been relatively quiet. While the British pound has been dealing with Brexit and a whole host of other issues, it has been a bit “perkier” as of late. So, with that in mind I think that it is only a matter of time before this market probably goes looking to the upside, but obviously the 200 day EMA will have something to say about that.
If we did break down below the 50 day EMA, I think that the ¥132 level would then be supportive. That area has proven itself to be pretty resilient, so I cannot imagine that it would be a whole lot different on the way down unless of course there was some type of major of that that changed the overall risk parameters.
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