GBP/JPY Price Forecast – British Pound Gets Hammered

The British pound got crushed again during the trading session on Monday as we initially rally but then gave back the gains to reach the top of the bullish flag I have marked on the chart. The GBP/USD pair was also hammered, so this is most certainly a British pound move, and not a rush towards the Japanese yen. That being said, we are to the point now where we have given back all of the election gains and then some. Because of this, it shows that 2020 is more than likely going to be just as nonsensical and noisy as 2019 was. I truly wish there was better news that I could give you, but it looks like the days of British pound noise will only be starting.

GBP/JPY  Video 24.12.19

From a technical analysis standpoint, the 50 day EMA is starting to come into the picture, and it is just above the ¥140 level which of course is a psychologically significant handle. That being said, I would anticipate that there should be a bit of support in that area. Regardless though, the holiday in the middle the week will crush volume, and that of course the New Year’s Day holiday will do the same thing next week. This may be a scenario where the market simply go sideways for the next week or so, which in this scenario might be one of the more bullish things they can do after the complete turnaround that we have seen. At this point, I would be very cautious with this pair, but I do think that there are buyers sitting just below.

Please let us know what you think in the comments below