GBP/JPY Price Forecast – British Pound Pulls Back to End WeekThe British pound pulled back a bit during the session on Friday to show signs of weakness at the 50 day EMA. That being said, it looks as if the market will continue to see more range bound trading.
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.