GBP/JPY Price Forecast – British Pound To Consolidate Against Japanese Yen

The British pound initially fell during trading on Wednesday, but then bounced enough to show signs of life again as the 200-day EMA continues to offer support. That being the case it looks likely that we are going to see a bit of a bounce as we continue to consolidate overall. This is true with the British pound against most currencies, so it shouldn’t be much of a surprise. If the market can break above the ¥142 level, then it could kick off the next leg higher but at this point in time it’s likely to see more choppiness than anything else as the Brexit situation, although better than it used to be, is still a huge mess.

GBP/JPY  Video 24.10.19

If the market was to break down below the 200-day EMA though, that could be a very negative sign going forward, sending this market down to the ¥135 level. Remember that this pair is highly sensitive to risk appetite around the world, so pay attention to how stock markets and other things like that are behaving. At this point, it’s very likely that the noise and headlines will continue to throw this pair back and forth, but eventually we should get some clarity. Typically, when you see some type of choppiness like this after an impulsive move, it means that we will can continue eventually following the impulsive move. That being said, the market has been a bit overdone, so simply grinding away and killing time makes quite a bit of sense as markets can’t go in one direction forever.

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