GBP/JPY Price Forecast – Pound Pulls Back Among Brexit Uncertainty

The British pound has pulled back towards the 50 day EMA, as the market is trying to find a bit of support near the ¥138.50 level, which makes quite a bit of sense considering that this is an area where we have seen buyers previously. At this point in time, the market is likely to see a lot of volatility and concern, but quite frankly it seems as if the British pound continues to find buyers regardless. The area between the 50 day EMA and the 200 day EMA seems to be massive support and therefore it is likely that we would see this as an area where we could have value hunting.

GBP/JPY Video 11.12.20

Sunday we should get more clarity when it comes to what happens next with the negotiations, so in the meantime it will probably be all about the latest Tweet, rumor, or whatever. Ultimately, I think we continue to see more the same but if we break down below the 200 day EMA, it is very likely that this market goes looking towards the ¥135 level. On the other hand, if we break above the ¥140 level, it could kick off the next leg higher. Ultimately, the ¥142.50 level could be a bit of a target, and at this point in time if we get any good news that suggests an actual deal between the EU and the UK is possible, that might be where we go. Either way, this continues to be a very volatile and choppy pair so you should be very cautious with your position size to say the least.

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