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

The British pound initially tried to rally during the trading session on Thursday but gave back quite a bit of the gains in order to show that there is of course a lot of negativity in this pair and the world in general. Remember that this pair is overly sensitive to risk appetite so it does make sense that we would continue to see selling pressure. Ultimately, this is a market that I believe will test the 132 young level, and then perhaps break down below there to go looking towards the 131 level. At this point, the market is highly likely to see a continued “fade the rally” type of attitude, and it appears that the British pound is going to be one of the bigger underperformers during the trading session.

GBP/JPY Video 24.04.20

To the upside, the market was to break above the ¥134 level, then it has likely that we would make a move towards the ¥135 level where the 50 day EMA is currently sitting. It is also near the 50% Fibonacci retracement level so that could attract a lot of attention in and of itself. That being said, it’s very difficult not to notice that the market has rolled over as of late, and if we break down below that 132 young level we could see an acceleration to the downside the United Kingdom is going to be locked up much longer than most of the other countries around the world, so that is most certainly something that is worth paying attention to. I also anticipate that there will still be a lot of volatility.