GBP/JPY Price Forecast – British Pound Recovers Into the WeekendThe British pound has bounced a bit into the weekend, as the ¥135 level has offered a bit of support as we had previously seen it offer resistance.
The British pound has fallen a bit early during the trading session on Friday, slicing through the 50 day EMA. At this point, the market then turned around and reached back above the ¥135 level, an area that is of course a large, round, psychologically significant figure that of course will attract a lot of attention. The area had previously shown so much in the way of resistance that support should be found at now. We have in fact seen that during the trading session in a somewhat back-and-forth type of movement.
GBP/JPY Video 15.06.20
Whether or not this is going to turn around and suddenly continue the longer-term uptrend remains to be seen, but it certainly looks as if we are at least going to try to make some type of supportive stance. Quite frankly, it will come down to how the day closes, and at this point one would expect somewhat of a bounce as we are stuck between the 50 and the 200 day EMA indicators, which quite often shows that a squeeze is coming. In the short term, I would anticipate that we will probably bounce back and forth between the two indicators, especially as the reaction has already started to happen.
Keep in mind that this pair is highly sensitive to risk appetite in general, so we should pay attention to how stock markets and the like behave over the next couple of days, because it will give us an idea as to where this pair goes over the next several weeks. There are a lot of obvious issues out there, but quite frankly this pullback has been healthy and even if you are bullish, you should look at it as helping the cause.
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