GBP/JPY Price Forecast – British Pound Looking for Stability

The British pound went back and forth during the trading session on Friday, looking for signs of stability after what has been a very difficult several sessions. That being said, we are getting close towards the ¥135 level, an area that should attract a lot of attention. Early in the Friday session the British pound did recover a bit, but at this point it looks as if the market is going to continue to be very “squishy” to say the least.

With all of that being said, the market looks as if it could go either way right now, especially as Brexit has become the main headline for the British pound again, as the UK and the EU are starting to bicker. This of course works against the value of the British pound, and against the Japanese yen it will be especially pronounced, as this pair tends to be more volatile anyway.

GBP/JPY Video 14.09.20

That being said, if we break down below the ¥135 level, the market is likely to unwind down to the ¥134 level, and then the ¥132 level. On the other hand, we could stabilize and a move towards the ¥138 level could determine whether or not the uptrend can continue. Clearing that level to the upside opens up the possibility of reaching towards the ¥140 level, and perhaps even beyond. The biggest problem with getting either too bearish or bullish of this pair is that everything can change in an instant with just a few choice words coming out of officials mouths.

For a look at all of today’s economic events, check out our economic calendar.