GBP/JPY Price Forecast – British Pound Struggling With 135 Level

The British pound initially tried to rally during the trading session on Friday but found the ¥135 level to be a bit too expensive. This isn’t a huge surprise, considering that the ¥135 level will be a large, round, psychologically significant figure, and of course we have the 50 day EMA above that is sloping lower. Ultimately, I think that rallies are sold into, and it’s likely that the Japanese yen will continue to offer a bit of safety in a significantly negative environment. Furthermore, the British pound is going to suffer due to the fact that the United Kingdom will remain locked down for quite some time.

GBP/JPY Video 20.04.20

At this point, it looks as if the 50% Fibonacci retracement level is likely to continue to see a lot of selling pressure as well, so I think that this market is very likely to go looking towards the ¥132.50 level again. The alternate scenario of course is that the market could break above the 50 day EMA, and then could go to the ¥137 level which is where the 61.8% Fibonacci currently resides, as well as a major gap that will cause some resistance. All things being equal though, this certainly looks like a market that is running out of momentum, which of course is the most dangerous thing for any type of uptrend.