GBP/JPY Price Forecast – British Pound Finds Buyers at Support

The British pound has fallen during the trading session against the Japanese yen during rather noisy trading on Wednesday yet again. The ¥132 level underneath is significant support, as the market bounced from there. However, if we break down below that level, is highly likely that we continue to see further fallout.

The bounce was rather impressive, but at this point it looks as if it is just that, a bounce. If we can break down below there, it is likely that the market will continue to fall towards to the ¥130 level. This is an area that should continue to be important and could cause another significant bounce. A break below there would be a sign of weakening economic conditions around the world, but at this point it is obvious that we are running on the most recent headlines when it comes to the coronavirus.

GBP/JPY Video 30.04.20

Looking at this chart, a bounce at this point will have to deal with major resistance at the ¥133.50 level, and then the ¥135 level after that. Ultimately, the market looks as if it is trying to rollover, so I look at bounces from this area as a potential selling opportunity, just as I see the idea of a breakdown below the ¥132 level is another reason to get short of this market. All things being equal I believe that this is a market that is simply waiting for someone to push it over a cliff. Whether it does it hear or from slightly higher levels remains to be seen.