GBP/JPY Price Forecast – British Pound Pulls Back From Major Level

The British pound has tried to break above the ¥140 level, but this is an area that has been trouble more than once. Ultimately, this is a market that is trying to push higher, and quite frankly I think it is only a matter of time before there is more movement to the upside. That being said, this is a market that is also being thrown around by Brexit and all of the noise involving that situation. Ultimately, Brexit negotiations continue to drag on and cause major headaches for traders overall but what is worth noting is that every time this market breaks down rather significantly, there seems to be plenty of traders out there willing to jump in, perhaps based upon the fact that sooner or later some type of an agreement will be met.

GBP/JPY Video 03.12.20

To the downside I see the 50 day EMA offering quite a bit of support, as it has been followed recently. You can also make an argument for a bit of an ascending triangle right now, which of course will attract the attention of some traders. Given enough time, I fully anticipate that this is a market that will break out because quite frankly it has done everything but breakout at this point. Ultimately, the market will continue to find reasons to go higher, because quite frankly that is what it has been doing for ages now. With this in mind I look to buy dips, but I also recognize it is probably going to be difficult for the final move to happen without some type of negotiated settlement between the EU and the UK.

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