GBP/JPY Price Forecast – British Pound Tests 200 EMA Against Yen

The British pound has fallen against the Japanese yen during trading on Wednesday, reaching down towards the 200 day EMA as Boris Johnson has announced that the UK government will limit gatherings to just six people. This should slowdown the British economy and therefore the currency may be feeling a bit of the effects of that sentiment. Furthermore, there has been a decidedly “risk off” flavor to the markets over the last couple of trading sessions, so that of course works against any risk appetite influenced pair like this one.

GBP/JPY Video 10.09.20

Adding to all of that is the fact that the Brexit now seems more likely than not to have no deal, and if that is going to be the case it is likely that it will be reflected in the value of the Japanese scratch that British pound overall. In other words, this is a market that should be feeling the pain. Having said that, the 200 day EMA does cause a certain amount of interest from a technical standpoint, so that is worth paying attention to as well.

With all that being said, the next day or two will be crucial to determine the directionality of this pair, but most decidedly has had a significant amount of technical damage late upon it during the last three days or so. Any bounce at this point will more than likely attract a certain amount of selling pressure, at least until some of the major fundamental issues come into play and get resolved. Although it does look like we are technically trying to save the pair here, I would be very leery about buying.

For a look at all of today’s economic events, check out our economic calendar.