GBP/JPY Price Forecast – British pound stallsThe British pound went back and forth during the trading session to open the week on Monday, as we continue to see a lot of questions about the Brexit. Beyond that, we have a certain amount of concern when it comes to global economics.
The British pound has gone back and forth early on Monday to show signs of stalling out. At this point, there is a significant amount of resistance between the ¥129 level and the ¥130 level above that. Beyond that area we have the 50 day EMA turning lower and trying to catch up with that region. At this point in time I feel it’s only a matter time before the sellers come back into this market, because quite frankly the Brexit is still a complete mess, and therefore it’s difficult to put a lot of faith into Sterling at this point.
GBP/JPY Video 20.08.19
On the other side of the equation we have the Japanese yen which of course is a major “safety currency.” At this point, I believe that the Japanese yen will be one of the most favored currencies as we enter a lot of concerns into the equation this fall. While we have fallen quite a bit, it does make sense that we get a little bit of a bounce in this general vicinity that we have seen over the last several days. At this point, I think it’s only a matter of time before the sellers come in and push this market lower. Quite frankly, I believe that the ¥130 level Will continue to be massive resistance and to keep this market down. At this point, I believe that the pair will continue to drive lower, perhaps targeting the ¥127 level again, and then possibly even the ¥125 level longer-term.
Please let us know what you think in the comments below