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

The British pound has gone back and forth during the trading session on Wednesday as we are hanging about the ¥133 level. To the downside, the ¥132 level offers support, as it has been important more than once. To the upside, the 50 day EMA is an area that is going to offer a little bit of resistance, and then possibly even an attempt at the ¥135 level could be next. Remember, this pair is overly sensitive to risk appetite so we need to see where that is going in general in order to glean where this pair will probably go.

GBP/JPY Video 25.06.20

The biggest thing though is the fact that we are stalling after an attempt to break out to the upside, so I think we more than likely test the ¥132 level. A breakdown below that level could send this market looking towards the ¥129 level, and therefore you could have a nice selling opportunity in that scenario. It is essentially a situation that we are waiting for some type of negative influence to come in and push things around. Ultimately, I think this is probably one of the more important currency pair to watch but the one thing that I would point out is that we shot straight up in the air, only to turn around a given back rather quickly. That tells me that the market is not quite ready to take off to the upside from a longer-term standpoint.

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