GBP/JPY Price Forecast – British pound stalls

The 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.
Christopher Lewis
GBP/JPY daily chart, August 20, 2019

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

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US