GBP/JPY Price Forecast – British Pound Pulls Back Against YenThe British pound has rolled over slightly against the Japanese yen during trading on Wednesday, as we are starting to see the overall long term downtrend reassert itself.
The British pound has broken down pretty significantly during the trading session on Wednesday, breaking through the ¥133 level during early hours. The British pound continues to show a lot of volatility due to the fact that it has probably rallied far too much in the short term, especially against the Japanese yen as there are plenty of reasons to think that there will be more of a “risk off” type of attitude out there. That being the case, it makes sense that we may perhaps continue to plunge towards the ¥130 level underneath which is a massive in its implications and of course is a large, round, psychologically significant figure.
GBP/JPY Video 02.04.20
To the upside, the ¥135 level looks to be rather resistive, and the fact that we have stalled in this area should not be a huge surprise, just if no other reason because we can’t go straight up in the air. I think volatility is going to continue to be a major issue, so therefore you will have to be cautious about your position size but clearly this is a market that will continue to cause a lot of headaches for those who are risk-averse. The markets will continue to throw themselves around, and therefore I think it’s a world of trouble just waiting to happen. Ultimately, I do think that the market is more likely to fall then not rally, but at this point anything is possible, and therefore you need to make sure that you protect yourself in these very difficult trading conditions that we find ourselves in. Presently, I am trading half the normal position size.