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

The British pound rallied a bit during the trading session on Monday, as we continue to see a lot of volatility in this pair and a lot of fight left in the British pound. Ultimately, this is a market that should continue to see quite a bit of interest in the markets once we get a little bit higher, and quite frankly I am looking to fade this pair because the British pound itself is a little overextended and quite frankly there are so many issues out there that it is only a matter of time before you we get some type of selling pressure come back in based upon some type of external pressure.

GBP/JPY Video 02.06.20

It could be the Brexit situation; it could also be the US/China trade position. It is only a matter of time before something negative comes out and spooks the market considering so many different pieces are moving, and therefore I think that a run back towards the Japanese yen makes sense. That being said, if we do somehow break above the ¥135 level on a daily close, then it could change the entirety of the trend and of course the way that the market perceives risk appetite in general. If that is going to be the case, then it is highly likely that the volatility is going to pick up and likely going to see some type of significant move. All things being equal, this is very noisy trading conditions just waiting to happen.

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