GBP/JPY Price Forecast – British Pound Testing Resistance

This pair of course is overly sensitive to risk appetite and it is worth paying attention to as far as how the rest of the world is doing. At this point, the market sees quite a bit of resistance in the realm of the ¥132 level, and therefore it makes quite a bit of sense that we may stall here. As we head into the weekend, do not be surprised at all to see the market drift a little bit lower, but overall this is a market that has been breaking down for some time, so I am a seller of this pair until we can break above the ¥133 level.

GBP/JPY Video 11.05.20

To the downside, it makes sense that we could go down towards the ¥130 level, as it is a large, round, psychologically significant figure and an area that will probably cause a little bit of support. If we can break down below there, then it is likely that the market goes looking towards the ¥125 level over the longer term. Remember, this would go right along with the idea of more of a “risk off” type of scenario. Fading rallies will continue to be my way to play this market, but I would also anticipate a lot of noise as the market is clearly focusing on the global growth situation, or perhaps even the lack of global growth. Ultimately, I have no interest in buying this pair anytime soon, even if we do break above the ¥133 level. The markets have been very quick to react to bad news at times, and therefore it makes sense this is a pair that will continue to struggle.