GBP/JPY Price Forecast – British Pound Gives Up Early Gains

The British pound continues to be very volatile as we initially spiked as high as ¥141.80 during the early hours on Friday, only to turn around and wipe out all of this gains by the time New York came online. At this point, it does look as if the ¥140 level is going to be a battleground, and now we are retesting when should be a very significant support level. With that being said, I do believe that the market will find some support here and bounce. Whether or not it can continue to take off to the upside might be an entirely different question, but at this point I do think that the momentum should continue to carry this market higher, as people seem to love the British pound these days.

GBP/JPY Video 31.08.20

When you look to the left, you can see an area of obvious noise that is coming into play, and the fact that the US dollar cratered against the Japanese yen was not helping the situation either. Nonetheless, the market still looks as if it is ready to go higher over the longer term, and therefore I will be looking to buy dips as they occur. Longer-term, I believe that now that we have pierced the ¥140 level on a much more convincing move, that we will eventually go looking towards the ¥145 level, but it does not necessarily mean that has to be easy to get there. I am buying dips, doing it very slowly, but still remain bullish on this pair until something changes in the absolute attitude of Forex traders.

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