GBP/JPY Price Forecast – British Pound Continues to Struggle

The British pound went back and forth during the trading session on Friday, heading into the weekend measured against the Japanese yen. The ¥133 level is a short-term resistance barrier, as seen by a shooting star from the Thursday session, and now it looks as if we could break down. The ¥132 level underneath is significant support and if it gets broken to the downside, it is likely that the market goes down to the ¥130 level, which I do believe happens given enough time. However, that does not mean that it is going to happen right away, but it certainly looks to be the attitude of risk appetite in general.

GBP/JPY Video 27.04.20

The candlestick was somewhat lost, and it does not necessarily suggest that we are ready to make a move, but it does seem as if markets are simply waiting for a reason to suddenly selloff. All things being equal, I am fading rallies on short-term charts, and most certainly getting aggressive to the downside below the ¥132 level, as it would show a significant break down. To the upside, I believe that the ¥130 level continues to be a major “ceiling”, right along with the 50 day EMA that is sitting in that same area. That being said, I find it a bit hard to believe that it certainly going to reach towards there, but we always have to have the alternate scenario in the back of our minds, especially in the type of environment the market has been and as of late.