GBP/JPY Price Forecast – British Pound Grinding Against Japanese Yen

The British pound has gone back and forth during the training session on Thursday against the Japanese yen as it needs to take a bit of a breather after the recent rip higher. With this in mind, it looks as if the ¥140 level seems to be a bit of a target.
Christopher Lewis
GBP/JPY daily chart, October 25, 2019

The British pound has gone back and forth against the Japanese yen during the trading session on Thursday, dancing around the psychologically and structurally important ¥140 level. This is an area that looks as if it is going to continue to attract a lot of attention, which makes sense as it is such a large, round figure. Beyond that, the market looks at this as an area of interest due to not only the 200-day EMA being underneath, but also the 61.8% Fibonacci retracement level offering resistance. In other words, this is exactly where you would expect to see the market put up some type of fight. Because of this it’s crucial to be patient and wait for some type of impulsive candlestick to get involved. At this point, it does look as if buyers have the upper hand longer-term, but short-term it looks as if we need to see a bit of digestion to say the least.

GBP/JPY  Video 25.10.19

If that’s going to be the case, then it’s crucial that you pay attention to the next impulsive candlestick. That will be your clue as to where this market goes next. If the market were to break down below the 200-day EMA, that would be a very bullish sign, sending this market towards the 100% Fibonacci retracement level longer-term, which is closer to the ¥149 level. At this point, expect a lot of choppy and back and forth trading, but give it enough time we should see an impulsive candle to follow.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US