GBP/JPY Price Forecast – Pound Continues Sideways Awaiting Brexit

The British pound went back and forth during the trading session on Tuesday as we continue to try to decide whether or not there is good or bad news coming out of Brexit, which seems to be a moving target to say the least. Ultimately, this is a market that I think still wants to go higher but quite frankly it is the latest Tweet or comment coming out that will cause the next move. To the upside, the ¥140 level will be a target, but if we can break above there on a daily close, then it is likely that we are going to continue going higher. However, that would almost certainly have to do with Brexit being solved, something that I am not holding my breath for in the short term. Because of this, I think that the pair continues to be very volatile in general.

GBP/JPY Video 16.12.20

The 50 day EMA should offer a certain amount of support underneath, and most certainly the 200 day EMA will as well. With that being the case, I am looking for short-term pullbacks in order to take advantage of value in the British pound, but I think at this point in time you need to be relatively quick to take profits, and therefore you would be well within your rights to simply step away from this market, because it is so volatile and skittish. Even though I can make an argument for the Japanese yen strengthening against the British pound, the reality is that it is almost impossible to short this market.

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