GBP/JPY Price Forecast – British Pound Pulls Back from Big Figure

The British pound pulled back a bit during the trading session on Wednesday as the ¥135 level has offered significant resistance. We have started to dig into the previous bullish flag, so the question is whether or not it will hold. It is getting a little bit of a boost due to the US dollar gaining against the Japanese yen, as currencies are measured how they do against the greenback. That being said though, expect a lot of volatility and it looks as if the British pound is starting to get hit against the greenback as well. In other words, we are going to have a lot of volatility and what I’m using as a proxy for the “ceiling” is the 50 day EMA now that we have broken down the way we have.

GBP/JPY Video 16.04.20

The market could go as low as the ¥132.50 level and still be in a strong uptrend. Because of this, I am leaving the British pound alone during the trading session, not only against the Japanese yen but also against the US dollar because I need a little bit more clarity at this point. I do believe that it’s only a matter of time before we have to make some type of significant decision but that’s essentially what we are looking at right now. All things being equal, we should get a significant amount of clarity here over the next couple of days and I think that the wise trade is to let the market tell you what it’s about to do. If you trying to front run what’s going on, you’ll get run over most of the time. There are plenty of other trades out there that are available.