GBP/JPY Price Forecast – British Pound Pulls Back to End Week

The British pound has pulled back a bit during the trading session on Friday to end out the week on a soft note. Having said that, the market is likely to continue to see a lot of back and forth noise. The 50 day EMA has certainly attracted a lot of attention, as we continue to see a lot of interest in the ¥135 region, extending to the ¥136 area. At this point, the candlestick has almost completely wiped out the previous candlestick, so it certainly looks as if we are trying to figure it out.

GBP/JPY Video 04.05.20

The noise will continue to be a major issue, and as a result I do believe that the 132 again level could cause some support. Overall, this is a market that will continue to be very noisy, but if we can break down below the 132 young level on a daily close, it opens up the door for a retest of the ¥130 level, and then possibly even the lows that we had hit recently. That being said, I do believe that the support will probably hold, because quite frankly the bullish traders out there have been resilient when it comes to all things risk related. Ultimately, this is a market that measures risk, and the fact that it was May day in Europe probably skews a little bit of the action. At this point, I consider it range bound and not overly interesting, but I am paying attention to the ¥136 level on the top as well as the ¥132 level on the bottom.