GBP/JPY Price Forecast – British Pound Fails Initial Push Higher

The British pound had initially rallied significantly during the trading session on Thursday but gave up the gains near the highs of the week, showing signs of struggles yet again. At this point, the market is dancing around the 50 day EMA and the 200 day EMA both of which are sitting just below the candlestick. I anticipate that this is a market that will probably continue to be very noisy and difficult, and therefore I think it is likely that we are probably going to see another push lower, perhaps down to the ¥136 level initially.

GBP/JPY Video 09.10.20

Beyond that, we have the ¥135 level which of course is a large, round, psychologically significant figure that is worth paying attention to, and of course an area where we have seen both buyers and sellers recently. Quite frankly, this is a market that is going to continue to move based upon Brexit more than anything else, and general risk appetite. Remember, the Japanese yen is considered to be a safety currency, so that is something that you should be paying attention to.

If we were to break down below the ¥135 level, it is likely that the market could go down to the ¥133 level. However, if we get some type of positive Brexit news, we will more than likely go looking towards the ¥138 level, and then possibly even the ¥140 level. Ultimately, this is a market that I think is going to continue to be noisy, but clearly, we have more downside risk than up at the moment, so that is something worth paying attention to.

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