GBP/JPY Price Forecast – British Pound Continues To Search For Stability

The British pound has pulled back slightly during the trading session on Wednesday, reaching down towards the middle of the hammer from the previous session, showing that the market is likely to continue to see a lot of volatility but perhaps more importantly, support underneath these prices. Furthermore, there is a bullish flag that sits just below that should continue to offer support. Furthermore, the ¥140 level should offer psychological support as well, as the market tends to pay attention to these round figures. Ultimately, the market should continue to see buyers sooner rather than later. This will be especially true if there is more of a “risk on” type of attitude.

GBP/JPY  Video 30.01.20

It’s not until we break down below the ¥139 level that I am concerned about the pair and it’s up trend overall, so therefore I’m looking for some type of bounce in this general vicinity to take advantage of, and perhaps try to reach and fill the gap from the beginning of the week. Furthermore, the market could go looking towards the ¥145 level, giving us an opportunity to profit from the volatility. We are most certainly in an uptrend, and therefore it makes quite a bit of sense that we continue to go further to the upside. This will be accelerated by good news coming out of anything related to Brexit, and of course strengthening stock markets should continue to push this pair higher as well, as traders will run away from the Japanese yen and the perceived safety of that currency. Somewhere between here and ¥140 I would fully anticipate the buyers will return. All of that being said, keep in mind that the Bank of England has an interest rate decision on Thursday, following the interest rate decision out of the Federal Reserve for Wednesday.

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