GBP/JPY Price Forecast – British pound pulls back from 200 day EMAThe British pound has been very choppy during trading on Monday, as we continue to see a lot of back-and-forth when it comes to risk aversion. The 200 day EMA has been tested, and it now has proven that it remains resistive. That being the case, a break above that, especially on a daily close, would be very strong.
This pair is essentially going to be a very difficult pair to get a grasp on at times, because the pair obviously has to deal with Brexit which is a complete mess. Brexit is all over the place, although there have been some more positive comments as of late, and that of course helps the British pound in general. This pair is a bit more thin than GBP/USD, so it will probably move rather quickly. That being the case, the market could be rather explosive in one direction or the other.
GBP/JPY Video 15.10.19
The ¥135 level underneath should be supportive, so a break down below there would lead to much deeper losses. However, at this point the market also has to deal with the overall risk appetite, which is a bit perplexing at the moment as the US/China trade situation has continued to stall and produce nothing. With that being the case it’s a bit surprising that this market would show signs of bullish pressure, as Brexit has obviously gotten this market in overdrive.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
If we were to break above the top of the candle stick for Friday, that opens up the door to the ¥140 level, which is a large, round, psychologically significant figure. At this point, we are essentially between two major levels, so it’s likely that the market will continue to be very noisy in general as the market has a lot to digest.
Please let us know what you think in the comments below