GBP/JPY Price Forecast – British Pound Continues To Grind Higher

The British pound went back and forth during the trading session on Thursday, as we await the jobs number out of the United States, giving us an idea as to whether or not it is a “risk on” scenario or not. If it is, that should drive this pair higher as the Japanese yen will certainly lose a bit of value. However, the British pound also has a lot of noise around it when it comes to trading due to the fact that the Brexit is still up in the air. Ultimately, this is a market that seems to be supported based upon technical analysis though, so I still have a significant upward bias.

GBP/JPY  Video 10.01.20

Underneath, the ¥140 level should offer support based upon the fact that it is a large, round, psychologically significant figure, and also is in the middle of the bullish flag that had formed previously. At this point, the 50 day EMA is currently offering support, so that also comes into play as well near the ¥141 level. Underneath, I think there are plenty of buyers but think of this more as an investment and less of a trade. We are working our way through the Brexit scenario, and the United Kingdom is likely to continue forward with its exit of the European Union at the end of the month. With that being the case, there will be a lot of noise, but this year is going to be about negotiations between the UK and the EU, as well as the US. This pair will continue to move right along with those headlines.

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