GBP/JPY Price Forecast – British pound continues to look soft

The British pound initially tried to rally against the Japanese yen, but then broke down again to form a rather negative sign. The market is sitting on top of that 50 day EMA, which of course causes a certain amount of support and interest in the market. Breaking down below the ¥132 level would of course send this market lower, perhaps reaching down to the ¥130 level. On the other hand, if the market were to turn around and break above the high from the Monday or Tuesday sessions, that of course could send this market higher, perhaps reaching towards the ¥135 level. That is an area that should cause a lot of resistance, as it is not only a large, round, psychologically significant figure, but it is also the 38.2% Fibonacci retracement level.

GBP/JPY  Video 02.10.19

As we have a lot of concerns when it comes to Brexit, I suspect this pair probably has more downside than up, as the market certainly has quite a bit to worry about when it comes to global trade wars, geopolitical issues, beyond any of the internal workings of the United Kingdom leaving the European Union. The Japanese yen should continue to attract a certain amount of money, as there should be plenty of concern out there to continue to drive this market lower. That being said, a headline could turn things around quite rapidly as we have seen more than once, so stop losses will be crucial.

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