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GBP/JPY Price Forecast – British Pound Pulls Back In Risk Off Move

By:
Christopher Lewis
Updated: Jan 3, 2020, 16:42 UTC

The British pound pulled back against the Japanese yen during the trading session on Friday, in reaction to the United States killing an Iranian general via airstrike. That being said, it was a major “risk off” move.

GBP/JPY Price Forecast - British Pound Pulls Back In Risk Off Move

The British pound has pulled back significantly against the Japanese yen during trading on Friday, reaching the top of the bullish flag yet again and perhaps more importantly the 50 day EMA. This was in reaction to the Americans killing an Iranian general via airstrike, as traders ran towards the safety of the Japanese yen in general. That being said, the market looks very likely to find buyers in this general area, extending all the way down to the 139 range. That being said, this is a market that should continue to be very noisy as we not only have the “risk off” attitude but also the Brexit headlines going on at the same time.

GBP/JPY  Video 06.01.20

This is not a pair for the faint of heart in the best of times, and currently right now it certainly isn’t the best of times. We are in an uptrend as of late though, even though we have seen a massive pullback. This area should hold as support all things being equal, but if it doesn’t this pair is going to break down rather brutally. A bounce from here makes quite a bit of sense, but only if we don’t get some type of massive reaction by the Iranians. Obviously, Brexit headlines can move this pair in one direction or the other as well, so be aware of that. Small position sizing is probably the best thing you can do for yourself in this general vicinity. If we can wipe out the Friday candlestick that would be an extraordinarily bullish sign.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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