GBP/JPY Price Forecast – British Pound Continues to Struggle at 135

The British pound has rallied significantly during the trading session on Tuesday but gave back quite a bit of the gains as we broke above the ¥135 level. It certainly looks as if the market is trying to get above there though, as Wall Street is more of a “risk on” type of situation during the trading session and as a result that could have the Japanese yen selling off in general. The ¥135 level is obviously a very crucial large round number, but at the end of the day it has been pierced a couple of times and that generally weakens any type of significant resistance that you see there.

GBP/JPY Video 15.04.20

The 50 day EMA is just above and that could cause some issues as well but at the end of the day there is still a gap above that has not been filled. I think that’s eventually where we are going to try to get to, at the ¥137 level. This of course is without some type of massive negative headline involving the coronavirus or some other such situation. At this point, it looks as if we are certainly going to try to break out to the upside but that doesn’t mean that it’s going to be easy to do. With that in mind, I am cautiously optimistic, lease for the short term. Longer-term I think that the negativity will return and push this pair lower eventually. It is earnings season in the United States, so perhaps that could play some part in that move.