GBP/JPY Weekly Price Forecast – British Pound Fighting Same Level

The British pound initially tried to rally during the trading session on Friday, as we continue to see a lot of noise around the ¥135 level. If the market has a bit of a magnet anywhere, it is going to be that level. The 50 week EMA is above and sloping lower. This leads me to believe that we will continue to see trouble. This makes sense because the British pound has been dealing with the Brexit situation, and of course whether or not the UK economy can continue to strengthen after the coronavirus lockdown is lifted.

GBP/JPY Video 20.07.20

If we did break above the 50 week EMA it would allow the market to go looking towards the ¥140 level. That is an area where we could break even higher from, but obviously we would need to see some type of “risk on” type of trade. This pair is sensitive to the risk appetite of traders around the world, so that will be worth paying attention to. For what it is worth, it looks like we could very well drop a bit from here, perhaps reaching down towards the ¥130 level before finding buyers again at the first signs of serious trouble in general.

The market has been choppy and will continue to be because there are so many questions out there as to whether or not we are in a “risk on” or potentially a “risk off” type of world right now. The volatility is going to continue to be breathtaking at times, and this pair will of course suffer as a result at times.

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