GBP/JPY Price Forecast – Pound Continues to Struggle With Same Area

The British pound has rallied rather significantly to kick off the trading session on Friday but continues to find the area above the ¥140 level as troublesome. Because of this, it looks as if the market is still going to be rather choppy, and obviously we are waiting on some type of Brexit news. Unfortunately, we will probably continue to have headlines out there that are simple negotiating ploys by various politicians on both sides of the English Channel. This has been a major problem for traders since the negotiations started years ago, and at this point I just do not imagine a scenario where that the changes.

GBP/JPY Video 21.12.20

All this being said, if we do get some type of Brexit deal, perhaps even over the weekend, the British pound will probably skyrocket to the upside. I imagine you can make a strong argument for a move to the ¥142.50 level rather quickly, and beyond. To the downside, I believe that the 50 day EMA will continue to offer support, so it is very likely that we will see buyers in that general vicinity as it is such a widely followed technical indicator.

All things being equal though, this is a market that will continue to be very noisy and when you look at the recent trading action you have to assume that we are still stuck in some type of range between ¥140 and ¥137.50 underneath. This unfortunately all comes down to the latest comments by politicians, which is an absolutely horrible environment to trade in.

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