GBP/JPY Price Forecast – British Pound Sitting at 140 JPY

The British pound has rallied slightly during the trading session on Tuesday, reaching towards the ¥140 level. That of course is an area that has caused resistance previously, and of course it is a large, round, psychologically significant figure which tends to attract a certain amount of attention anyway. The 50 day EMA sits underneath and starting to reach towards higher levels. Because of this, it is likely that the market will continue to struggle as we try to figure out what the Brexit is going to actually accomplish now that we have signed the deal. With this being the case, the market is likely to be very choppy heading into the new year.

GBP/JPY Video 30.12.20

Ultimately, it does look as if we will probably continue to find buyers, but quite frankly that is not necessarily mean that we need to go straight up in the air. The ¥142.50 level above is the next target if we do break out to the upside, as it was a recent high. When you look at the chart though, you can see that we have been in a slightly bullish channel, and I do not think that has changed. The overall attitude of risk appetite right now is a bit positive though, so that in and of itself could drag this pair higher. As far as selling is concerned, I have no interest in doing so, at least not until we break significantly below the 200 day EMA which is sitting at roughly ¥137.50 just below.

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