GBP/JPY Price Forecast – British pound continues to form base

The British pound has initially pulled back during the trading session on Monday but found enough support to turn around of form a hammer. That being the case it does look like the market is trying to show signs of life and perhaps reach towards the ¥138 level. That is an area that has been rather resistive a couple of times, but the highs continue to get just a little bit lower. The 50 day EMA is drifting lower, and it looks as if that could offer a bit of resistance.

GBP/JPY  Video 09.07.19

To the other side, if we were to break down below the ¥135 level, that could send this market much lower, perhaps down to the ¥132.50 level next. That being said, this is a market that should continue to show significant volatility, and of course with the overall lost attitude of the markets, just about anything is possible. Keep in mind that this is a very risk sensitive base currency pair, so with that in mind it’s very unlikely that the pair will be easy to deal with, but keep in mind that your position should be relatively small until it makes some type of obvious move. Consolidation in this overall range is probably the most likely scenario, so this point it makes sense to be overly cautious. We are through the jobs number, so now the question is what’s next? Again, watched this 300 PIP range to see where we could or could not go over the next move.

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