GBP/JPY Price Forecast – British Pound Continues to Levitate

The British pound has gone back and forth during the bulk of the session on Friday against the Japanese yen, albeit in a really tight range for the day. Having said that, the overall range for the market is pretty clearly defined as well, with the ¥135 level underneath offering support, and the ¥138 level above offering resistance. This suggests that we are going to see more back-and-forth trading and as we are roughly in the middle of that range, I do not see any reason to put money to work here.

GBP/JPY Video 09.11.20

Another thing the need to keep in mind is that there are a multitude of things out there driving risk appetite, not to mention the fact that Brexit will directly affect this pair. Brexit still seems to be a bit of a mess, so I think at this point in time you are probably going to see a lot of back and forth on short-term frames, at least until we get a little bit more resolution to Brexit. I can honestly say that is a statement that I have used multiple times over the last three years or so, and I am tired of typing it.

All that being said, there is not much you can do when currencies are in the hands of politicians. They simply do not care what happens to the markets, and therefore what happens here will have no effect on what they do. All you can do this point is look at the ¥135 level as a potential buying opportunity, and the ¥138 level as potential selling opportunity, at least until we get clarity.

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