GBP/JPY Price Forecast – British Pound Pulls Back Into the Weekend

The British pound pulled back during the trading session on Friday, after initially spinning most of the week rallying quite strongly. Ultimately, the market does look as if it is trying to find resistance above, and therefore I think that buyers will continue to come back into the market to try to find value, but if we get some type of shock then we are going to fall right back down. The ¥130 level underneath will be important, and a target for short sellers. To the upside, I can see the ¥134.50 level as resistance, and then perhaps the ¥137 area.

GBP/JPY Video 30.03.20

At this point, it should be obvious that the market had sold off quite a bit too quickly, and therefore it makes sense that we got this massive bounce. The question now is whether or not the market can hang onto these gains? As far as hanging onto a longer-term uptrend, it seems very unlikely until we can get above the 200 day EMA which is painted black on the chart. Currently, that is near the ¥137 level. Above there, then the market goes looking towards the ¥140 level next. Breaking above those levels would undoubtedly show a significant amount of strength and perhaps a complete trend change. I don’t anticipate that in this environment though, because there are far too many headlines out there that could cause issues. Ultimately, the market should continue to be very noisy, and at this point I believe it is much easier to sell exhaustion that it is to buy the short-term dips.