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

By:
Christopher Lewis
Published: Apr 22, 2020, 13:57 UTC

The British pound has rallied against the Japanese yen to break above the 133 in level but does look as if it is struggling a bit as we have reached this area.

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

The British pound rallied a bit against the Japanese yen, bouncing from the ¥132 level to show signs of life again. However, there is quite a bit of negative pressure out there and the fact that we broke down through the obvious support level at the 132.50 level suggests to me that we will probably see more selling in the future. Furthermore, this is a very risk sensitive currency pair, so again, I think it makes quite a bit of sense to see this market fail to rally for a longer-term move. A break down below the lows of the last two sessions would send this pair towards the ¥130 level given enough time.

GBP/JPY Video 23.04.20

The 50 day EMA is sitting just above the ¥135 level, so therefore it is worth paying attention to. If we were to turn around a break above, there then we need to pay attention to the trend in general. That would take a significant shift in overall attitude and I am looking to fade this rally on signs of exhaustion, especially the closer we get to the 134 level. If we were to turn around and break above the 50 day EMA then I am more than willing to take a loss and turn around to start buying.

I believe that breaking below the ¥130 level is going to be a bit on the difficult side, so I would not necessarily look to press the issue to send the market lower than there. At this point, I believe that the market is going to continue to be a “fading the rallies” scenario.

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.

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