Advertisement
Advertisement

GBP/JPY Price Forecast – British Pound Sideways Against Yen

By:
Christopher Lewis
Updated: Jan 13, 2020, 17:05 GMT+00:00

The British pound went back and forth during the trading session on Monday, as we continue to see a lot of noise in this marketplace. There are a lot of concerns about whether or not the Bank of England may have to cut rates later this month.

GBP/JPY

The British pound has gone back and forth during the trading session on Monday as traders start to weigh whether or not there is going to be a rate cut at the end of the month by the Bank of England with very anemic GDP figures. At this point, the market has been grinding a bit lower but there is a significant amount of support just below. The 50 day EMA should offer a bit of support, so it’ll be interesting to see what happens in that general vicinity. While the market has been a bit a bit sluggish during the trading session on Monday, but ultimately this is a market that seems to have a lot of support underneath, as seen from the previous bullish flag. Breaking through that bullish flag would be very difficult, but if we did slice through the ¥139 level, that would be a very negative sign.

GBP/JPY  Video 14.01.20

With that in mind I believe that the market will probably find buyers as we drift towards the ¥141 level again, but if the market does break above the highs from the previous couple of sessions, that could kick off a move much higher. Remember, this pair is highly sensitive to risk appetite, so if there is more of a “risk on” move, that should drive this market towards the highs again. Otherwise, expect it to drift lower, and test a lot of these major areas below which I see is a roughly 200 PIP range.

Please let us know what you think in the comments below

About the Author

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.

Advertisement