Advertisement
Advertisement

GBP/JPY Price Forecast – British Pound Continues to Grind Against Resistance

By:
Christopher Lewis
Published: Aug 12, 2020, 15:05 UTC

The British pound has rallied a bit on Wednesday against the Japanese yen, but continues to face the same problem just above in the form of the ¥139 region.

GBP/JPY

The British pound has rallied a bit during the trading session on Wednesday but continues to find resistance between the ¥139 and ¥140 levels. Because of this, it makes quite a bit of sense that we have struggled a bit, but if we can break above that ¥140 level it is likely that we will go much higher. At that point I would anticipate that the pair goes looking towards the ¥145 level. Pullbacks at this point in time should be buying opportunities, as the market will more than likely find reasons to recover near the ¥136 level where the 200 day EMA sits and is ready to be crossed by the 50 day EMA.

GBP/JPY Video 13.08.20

All of these things being said, the pair is highly sensitive to risk appetite out there, so pay attention to what goes on in the stock markets as well. Ultimately, I think that this is a pair that does go higher but the question is whether or not we can simply break out or if we need to pullback in order to do so. We should have some type of decision soon, and I am more than willing to go right along with it. However, if we were to break down below the ¥135 level, something that I do not see happening, that would change everything. Until then, I do prefer to buy this market on either the breakout or value offers underneath. The British pound has been extraordinarily bullish against most things, so I do not see that changing longer-term, especially against the Japanese yen of all currencies.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement